Assuming Carbon Tax in a Simultaneous Production and Maintenance Planning Optimization

In this paper, we address the challenge of simultaneous production and maintenance planning under carbon emission (CE) regulations, aiming to minimize the combined costs of production, setup, inventory, maintenance, and CE. The study focuses on the multi-item capacitated lot-sizing problem, incorporating carbon emission considerations to ensure compliance with environmental regulations and promote sustainable manufacturing practices. We develop a mixed-integer non-linear program to model the problem and subsequently perform linearization techniques to enable its efficient solution. The linearized model is solved using the CPLEX solver, demonstrating a significant reduction in carbon emissions when faced with high carbon taxes. The results highlight the importance of integrating maintenance and production planning with carbon emission constraints, emphasizing the potential for achieving both economic and environmental benefits in manufacturing operations. The paper contributes to the ongoing efforts to develop sustainable and responsible strategies for production and maintenance planning in the context of increasingly stringent carbon emission regulations.