The carbon-constrained EOQ

Xi Chen, Saif Benjaafar, Adel Elomri

Research output: Contribution to journalArticlepeer-review

411 Scopus citations


In this paper, we provide analytical support for the notion that it may be possible, via operational adjustments alone, to significantly reduce emissions without significantly increasing cost. Using the EOQ model, we provide a condition under which it is possible to reduce emissions by modifying order quantities. We also provide conditions under which the relative reduction in emissions is greater than the relative increase in cost and discuss factors that affect the difference in the magnitude of emission reduction and cost increase. We discuss the applicability of the results to systems under a variety of environmental regulations, including strict carbon caps, carbon tax, cap-and-offset, and cap-and-price.

Original languageEnglish (US)
Pages (from-to)172-179
Number of pages8
JournalOperations Research Letters
Issue number2
StatePublished - Mar 2013

Bibliographical note

Funding Information:
This work was supported by grants from the U.S. National Science Foundation, the University of Minnesota Center for Transportation Studies , and the International Design Center at Singapore University of Technology and Design .


  • Carbon emissions
  • Economic order quantity
  • Environmental regulations
  • Inventory management
  • Sustainable operations


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