Optimal procurement decision with a carbon tax for the manufacturing industry
X Ma, P Ji, W Ho, CH Yang
Computers & Operations Research | Elsevier | Published : 2018
A carbon tax, which has been implemented in several countries, is a cost-effective scheme for reducing carbon emission and developing sustainable supply chains. Two problems, how to make the optimal decision on order quantity and how to select appropriate suppliers for a manufacturer, are studied in this paper in consideration of a carbon tax. For the first problem, a dynamic programming model is developed to study the impact of the carbon tax on calculating the optimal order quantity. In reality, the manufacturer could choose a traditional or a greener supplier. The greener supplier is relatively expensive but yields lower emissions. To obey the emission regulations, the manufacturer should..View full abstract
The authors acknowledge The Hong Kong Polytechnic University for the financial support of the projects GUA7Y.