Inventory Lot-Sizing Under Dynamic Stochastic Demand with Carbon Emission Constraints

In this paper we investigate the effects of emission- and system-related parameters on inventory lot-sizing problem and supply chain performance under dynamic stochastic demand, considering carbon cap-and-trade regulatory mechanism. We develop an integer linear programming model to conduct extensive computational experiments to produce results for different business settings. Furthermore, we show that the cycle service level and the demand coefficient of variation have significant effects on costs, inventory and emission generated in a supply chain.