Track: Inventory Management
Abstract
Carbon emissions is a subject of growing importance in recent years as companies and countries are under pressure to reduce such emissions to a level below what is called carbon cap. They are expected to find the best solution to reduce the amount of carbon emissions while minimizing the total cost. In this research we developed an integrated model of inventory and transportation from a single supplier to multiple customers considering carbon emission. Our objective is to find an optimum solution that considers both total cost and carbon emissions. Our numerical examples show that the carbon cap affect the total emission and total cost. In addition we also show relationships between the inventory level kept by the customer and the carbon cap.