Inventory and Logistic Management in Supply Chains With Consideration of Carbon Emissions
This study investigates the effects that carbon policies and green technologiesmay have on the integrated inventory of a two-echelon supply chain with consideration of carbon emissions during the processes of product production, transportation, and storage. We consider the three carbon policies: limited total carbon emissions, carbon taxation, and cap and trade, and determine their corresponding optimal production quantity, delivery quantity, and green investment amount with an aim of minimizing the costs, and examine the feasibility of a green technology in reducing carbon emissions for different carbon taxes, trading prices, and cap limits. The results show that firms adopting the carbon tax policy would prefer to invest a relatively efficient green technology. With regard to the sources of carbon emissions, the effects of unit carbon emissions during production and unit distance of transportation are the most dramatic, and the cap limit has greater effects than the carbon emissions reduction factor of the green technology.
Keywords - Carbon Emissions, Carbon Taxation, Carbon Trading, Green Technology, Integrated Vendor-Buyer Inventory.