The Impact on Inventory Control Policy with Retailer When Considering Carbon Emission System

This paper formulates a dynamic programming model to investigate the impact on the inventory management with respect to carbon emission problem. Our results show that, the lower control limit of replenishing policy is smaller than that of non-carbon case while when the ratio of transferring cost to holding cost is larger than the service level of non-carbon system, while the upper bound of inventory control limit in carbon emission system is more sensitive to that of non-carbon case.