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<p>This paper presents a static inventory model having a constant demand rate with the production of items at two rates. The production inventory system is controlled according to the following (<i>Q</i>,&#xa0;<i>S</i>) policy : the production rate is switched from one rate to another when the inventory level reaches <i>Q</i> and continued until inventory level reaches <i>S</i>. Once the inventory level reaches <i>S</i>, we switched off the production and we start the production when it drops to zero. Shortages are not allowed. The items are assumed to be of deteriorating type. We formulate four optimization, namely, total operating cost without carbon emission, total operating cost subject to carbon cap, total operating cost with carbon tax and total operating cost with cap-and-trade policy. The optimal decision variables are studied and the sensitivity analysis is carried out for various costs and parameters. We have demonstrated that, among the carbon policies considered, the carbon cap-and-trade policy offers better control over the cost structure.</p>

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Deteriorating Inventory Model with Two Rates of Production Under Various Carbon Emission Policies

  • 期刊论文

  • 发表日期：

    2026年3月21日

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  • P. K. Kiruthika,
  • S. Moneca,
  • B. Sivakumar,
  • G. Arivarignan

摘要

This paper presents a static inventory model having a constant demand rate with the production of items at two rates. The production inventory system is controlled according to the following (Q, S) policy : the production rate is switched from one rate to another when the inventory level reaches Q and continued until inventory level reaches S. Once the inventory level reaches S, we switched off the production and we start the production when it drops to zero. Shortages are not allowed. The items are assumed to be of deteriorating type. We formulate four optimization, namely, total operating cost without carbon emission, total operating cost subject to carbon cap, total operating cost with carbon tax and total operating cost with cap-and-trade policy. The optimal decision variables are studied and the sensitivity analysis is carried out for various costs and parameters. We have demonstrated that, among the carbon policies considered, the carbon cap-and-trade policy offers better control over the cost structure.