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Dynamic Optimal Production Strategies Based on the Inventory-Dependent Demand under the Cap-and-Trade Mechanism
Joint Authors
Ma, Qiuzhuo
Chen, Gongyu
Song, Haiqing
Source
Mathematical Problems in Engineering
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-13, 13 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-05-07
Country of Publication
Egypt
No. of Pages
13
Main Subjects
Abstract EN
Cap-and-trade system is the most popularly applied mechanism that is currently recognized to be effective in stimulating the enterprises to environmentally friendly operate through emission reduction.
In this paper, we consider a single company whose carbon emission is generated from not only its production process but also its inventory management activity.
A continuous optimal control model is used to find the optimal dynamic production policy on the objective of profit maximization with respect to the cap-and-trade mechanism.
Some properties of the strategies are derived concerning the timing of production rate adjustment and the length of the decision duration period.
The capacitated strategy is also discussed, in which different combinations of different decision intervals of different production rates are explicitly explored.
The impact of various factors on the length of these intervals is qualitatively described.
Through the sensitivity analysis, we further discuss the impact of product prices on the positions of the switch time points between the decision intervals.
Company’s performance including profit and emission is numerically compared in the situation of joining or not joining the cap-and-trade system.
American Psychological Association (APA)
Ma, Qiuzhuo& Song, Haiqing& Chen, Gongyu. 2014. Dynamic Optimal Production Strategies Based on the Inventory-Dependent Demand under the Cap-and-Trade Mechanism. Mathematical Problems in Engineering،Vol. 2014, no. 2014, pp.1-13.
https://search.emarefa.net/detail/BIM-454010
Modern Language Association (MLA)
Ma, Qiuzhuo…[et al.]. Dynamic Optimal Production Strategies Based on the Inventory-Dependent Demand under the Cap-and-Trade Mechanism. Mathematical Problems in Engineering No. 2014 (2014), pp.1-13.
https://search.emarefa.net/detail/BIM-454010
American Medical Association (AMA)
Ma, Qiuzhuo& Song, Haiqing& Chen, Gongyu. Dynamic Optimal Production Strategies Based on the Inventory-Dependent Demand under the Cap-and-Trade Mechanism. Mathematical Problems in Engineering. 2014. Vol. 2014, no. 2014, pp.1-13.
https://search.emarefa.net/detail/BIM-454010
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-454010