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Sustainable Economic Production Quantity Models: An Approach toward a Cleaner Production

Yosef Daryanto 1 and Hui Ming Wee 2
1. Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli, Taiwan
Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Yogyakarta, Indonesia
2. Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli, Taiwan
Abstract—Economic production quantity (EPQ) model determines the optimal amount of products to make at one production cycle. This method has been studied for over a century, and is still growing. This paper presents two sustainable or environmentally friendly EPQ models that consider carbon emission in the total cost function. With the increasing challenge to reduce industry’s carbon emissions, scholars incorporate sustainability consideration into production decision models. The objective of such approach is to build a cleaner production system that produces less carbon emission. First, this paper presents a basic sustainable EPQ model that considers carbon emission from production, warehousing, and waste disposal activities. Second, we extend the model considering full backorder situation. This paper also illustrates the potential emission reduction from the developed models. 

Index Terms—economic production quantity, carbon emission, cleaner production, shortage backorder

Cite: Yosef Daryanto and Hui Ming Wee, "Sustainable Economic Production Quantity Models: An Approach toward a Cleaner Production" Journal of Advanced Management Science, Vol. 6, No. 4, pp. 206-212, December 2018. doi: 10.18178/joams.6.4.206-212
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