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      • Dept. of Industrial Engineering - Master's degree
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      •   BUIR Home
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      • Bilkent Theses
      • Theses - Department of Industrial Engineering
      • Dept. of Industrial Engineering - Master's degree
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      The newsvendor problem with multiple inputs and environment sensitive customers

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      Author(s)
      Sönmez, Nazlı
      Advisor
      Gürler, Ülkü
      Date
      2015
      Publisher
      Bilkent University
      Language
      English
      Type
      Thesis
      Item Usage Stats
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      Abstract
      Motivated by the global aim and trends to reduce carbon emissions, in this thesis we investigate the effects of carbon sensitivity on the operations management in the context of inventory management. We assume the newsvendor setting under multiple substitutable inputs with varying carbon emission levels, and carbon sensitive random demand. The Cobb-Douglas production function is used which provides a link between the production quantity and the inputs. Our goal is to determine the optimal production quantity under two different supply chain models. In the decentralized model, we consider an independent manufacturer and a retailer, where the retailer orders Q units to the manufacturer and the manufacturer produces these items in such a way that he minimizes his production cost. In the integrated production or the centralized model, the manufacturer and the retailer act as a centralized system and the aim is to find the production quantity that maximizes the expected profit of the integrated system. Exact expressions for the expected profits of both models are derived and analytical results regarding the optimal solutions are presented. Numerical results are also provided to illustrate the effects of the system parameters and carbon sensitivity levels.
      Keywords
      Newsvendor
      Environment Sensitive Customers
      Carbon Emissions
      Inventory Management
      Carbon Sensitive Demand
      Multiple Inputs
      CobbDouglas
      Operations Management
      Permalink
      http://hdl.handle.net/11693/30060
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      • Dept. of Industrial Engineering - Master's degree 326
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