Browsing by Subject "Economic Order Quantity"

Now showing 1 - 2 of 2

Open Access
Generating a robust model for production and inventory control
(1993) Sencer, Aslı
In tills stud}', we generate a production and inventory control model which gives h'obust‘ solutions against demand estimation errors. This model is applied to a real production and inventory system; howe\’er, it is a general model where the demand rate is stochastic with a known probability distribution and other parameters of the system are constant. The proposed model is a bi-objective chicision making model, with two decision variables. .A ‘compromised* solution is found for the problem using the trade-off curve generated by a constrained sequential optimization technique, applied on a nonlinear programming model parametrically. Robustness against parameter estimation errors is tested by sensitivity analysis. Here a new dimension is added to sensitivity analysis methodology by including a sensitivity measure as a ‘cost of error* of parameter estimation. By so doing, the proposed model is tested against the classical EOQ model and it is shown that the proposed model ])erforms far better.
Open Access
Joint decisions on inventory replenishment and emission reduction investment under different emission regulations
(Taylor & Francis, 2014-09-16) Toptal, A.; Özlü, H.; Konur, D.
Carbon emission regulation policies have emerged as mechanisms to control firms’ carbon emissions. To meet regulatory requirements, firms can make changes in their production planning decisions or invest in green technologies. In this study, we analyse a retailer’s joint decisions on inventory replenishment and carbon emission reduction investment under three carbon emission regulation policies. Particularly, we extend the economic order quantity model to consider carbon emissions reduction investment availability under carbon cap, tax and cap-and-trade policies. We analytically show that carbon emission reduction investment opportunities, additional to reducing emissions as per regulations, further reduce carbon emissions while reducing costs. We also provide an analytical comparison between various investment opportunities and compare different carbon emission regulation policies in terms of costs and emissions. We document the results of a numerical study to further illustrate the effects of investment availability and regulation parameters.