Optimal Production Decisions for Deteriorating Items with Investment on Production Processes

Author(s):  
Ping-Hui Hsu ◽  
Hui-Ming Teng ◽  
Hui Ming Wee
2013 ◽  
Vol 7 (1) ◽  
pp. 9-13
Author(s):  
Honglei Tang ◽  
Guofang Song

This paper mainly studied the influence on the carbon emission permits and trading on the production strategy for manufacturing enterprises. The enterprises might obtain carbon emission permits in three different ways, i.e. government quota, market trading and purification treatment. The enterprises must make a tradeoff between them. The characteristic of purifying cost was analyzed. Then, an optimal production model with carbon emission permits and trading was established. Finally, a typical numerical experiment was employed to show the influence of the parameters on optimal production decisions.


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