Capacity Allocation and Demand Management of a New Sustainable Product: A Two-Stage Stochastic Programming Model under Carbon Emission Regulations

Document Type : Original Article

Authors

Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran

Abstract

This paper reviews a two-stage stochastic programming model for integrating the decision problems of "determining capacity levels" and "determining environmental policy plans for assembly centers and consumers" for new sustainable products by considering economic and environmental factors. For this model, in the first stage, the capacity level of the new product is determined by the assembly company. Then, the amount of consumer demand is observed, which affects the decision-making of the first stage. In the second stage, the revision decision is made in line with the random scenarios that affect the decisions of the first stage. The main goal is to maximize the benefits of environmental policy programs for assembly centers and consumers by considering consumer demand under carbon policy. This paper provides a model that considers the permissible threshold limit for carbon emissions (carbon emission policy) to achieve this goal. A numerical example of the demand for reusable cars is presented. The results of this paper provide valuable insights for policymakers and assembly centers in implementing environmental policies.

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References

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