Industrial Engineering Journal

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A Multi-objective Order Decision Model with a Weighted Sum Algorithm

  

  1. School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China
  • Online:2016-10-31 Published:2017-02-21

Abstract:

)〖JZ)〗〖WT5HZ〗Abstract: 〖WTBZ〗A model is proposed taking into account the link between an inventory policy (EOQ), total carbon emissions, and both price and environmental dependent demands. A multiobjective optimization model is developed, in which both carbon emissions minimization and manufacturers profit maximization are achieved. In this model, carbon emissions of manufacturer is not merely linearly related with the order quantity of goods, which shows that transport and warehouse operations generate large amounts of carbon emissions. The weighted sum algorithm is presented to solve the proposed model. The carbon tax's influence on the multiobjective decisionmaking is analyzed. It is shown that under different membership weights, order quantity, demand and carbon emissions have different change trends, which indicates that carbon tax will effectively reduce total carbon emissions. On the one hand, for an environmentally aware company, the government should take the policy of reducing carbon tax; on the other hand, to reduce carbon emissions, the government should increase carbon tax of some companies whose main motivation is profit.

Key words: economic order quantity (EOQ), multiobjective, weighted sum, carbon emissions, carbon tax