A sustainable bi-objective inventory model with source-based emissions and plan-based green investments under inflation and the present value of money

• Authors: DATTA Tapan Kumar , DATTA Sayantan , GOSWAMI Adrijit
• Languages of publication: EN

Abstracts

EN

The paper develops a finite-horizon inventory model with source-based emissions, plan-based green investments under inflation, and the present value of money. The cap-and-trade policy is used as the carbon policy. The model is solved in a bi-objective scenario where the two objectives are maximization of the present value of net profit and minimization of the total emission. We find the Pareto optimal solutions represented by a Pareto front using the ε-constraint method. A flowchart is provided to find the non-dominated solutions. Pareto solutions for three special cases (no inflation, carbon tax, and no green investments) are also derived. In our sensitivity analyses, we observe that the carbon quota does not affect the optimal policy. It only affects the optimum profit. Our model shows that green investment is beneficial for the polluting firm and also for the environment.

Keywords

EN

bi-objective; carbon policy; emission; green investment; inflation; Pareto front

• Publisher: Politechnika Wrocławska. Oficyna Wydawnicza Politechniki Wrocławskiej
• Journal: Operations Research and Decisions
• Year: 2024
• Volume: 34
• Issue: 1
• Pages: 91-117

Contributors

author

DATTA Tapan Kumar

• Department of Mathematics, Institute of Technology, Nirma University, Gujarat, India

author

DATTA Sayantan

• Alumnus of Department of Computer Science, BITS Pilani, Dubai Campus, Dubai, UAE

author

GOSWAMI Adrijit

• Department of Mathematics, Indian Institute of Technology Kharagpur, West Bengal, India

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Identifiers

DOI

10.37190/ord240105