THE EFFECTS OF CARBON EMISSION ON PRODUCTION AND INVENTORY CONTROL IN HYBRD PRODUCTION SYSTEMS

Abstract

Scarce resources, highly competitive environment and legal regulations increase the interest in sustainability issue from both companies and public. Recycling, reuse and remanufacturing are leading approaches to incorporate sustainability into production systems. This study aims to determine the effect of carbon emission on production and inventory decisions in hybrid production systems. Two different setup processes are considered for hybrid production system; there are separate setup or joint setup processes for production and remanufacturing. A mixed-integer linear programming has been proposed to solve the considered problem. According to the results of base case and sensitivity analysis, carbon emission considerably affects the total costs performance of both production systems.