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Order Decision with Random Demand: A Research from the Perspective of Carbon Emission Cap and Carbon Trade Mechanism

In: Ltlgb 2012

Author

Listed:
  • Weihua Liu

    (Tianjin University)

  • Wenchen Xie

    (Texas A&M University)

  • Guowei Hua

    (Beijing Jiaotong University)

Abstract

This paper mainly discusses the impact of carbon emission cap-and-trade mechanism on the order decision-making with random demand. First, considering the random demand, carbon emission cap-and-trade, a single-cycle order model has been established. Then this model is solved and the optimal order quantity is put forward. Many interesting observations which are different from the order decision-making for stable demand are found out. The research shows that: a value range of carbon trading price exists; Carbon cap-and-trade mechanism can motivate the organizations to reduce carbon emission effectively; whether the company should buy carbon credits depends on the actual carbon emission and carbon emission cap; Reducing carbon emission doesn’t necessarily lead to high cost.

Suggested Citation

  • Weihua Liu & Wenchen Xie & Guowei Hua, 2013. "Order Decision with Random Demand: A Research from the Perspective of Carbon Emission Cap and Carbon Trade Mechanism," Springer Books, in: Feng Chen & Yisheng Liu & Guowei Hua (ed.), Ltlgb 2012, edition 127, chapter 0, pages 585-593, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-34651-4_81
    DOI: 10.1007/978-3-642-34651-4_81
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    Citations

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    Cited by:

    1. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
    2. Konur, Dinçer & Campbell, James F. & Monfared, Sepideh A., 2017. "Economic and environmental considerations in a stochastic inventory control model with order splitting under different delivery schedules among suppliers," Omega, Elsevier, vol. 71(C), pages 46-65.
    3. García-Alvarado, M.S. & Paquet, M. & Chaabane, A., 2015. "On inventory control of product recovery systems subject to environmental mechanisms," International Journal of Production Economics, Elsevier, vol. 165(C), pages 132-144.

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