Optimal Lot Size and Backordered Quantity Under Carbon Tax

Researchers and industry are working together to develop low carbon inventory models that comply with carbon pricing regulations while maintaining company profits. However, this task becomes more challenging when companies also face issues related to product quality imperfections. To address this issue, a new study has developed an economic order quantity (EOQ) model that takes into account carbon emission tax, defective rates, selling prices, imperfect items, scrap items and backordering. The objective of this mathematical model is reduce overall expenses, encompassing emissions-related costs. A numerical example is come up to adorn the model, based on previous data. Sensitivity analysis has also been performed to validate the model and understand system characteristics, identifying the factors that affect total emissions.