The carbon-constrained EOQ

Xi Chen, Saif Benjaafar, Adel Elomri

Research output: Contribution to journalArticle

231 Scopus citations

Abstract

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
Volume41
Issue number2
DOIs
StatePublished - Mar 1 2013

Keywords

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

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    Chen, X., Benjaafar, S., & Elomri, A. (2013). The carbon-constrained EOQ. Operations Research Letters, 41(2), 172-179. https://doi.org/10.1016/j.orl.2012.12.003