This study analyzes an inventory control problem of a company in stochastic demand environment under carbon emissions regulations. In particular, a continuous review inventory model with multiple suppliers is investigated under carbon taxing and carbon trading regulations. We analyze and compare the optimal (Q;R) policies with order splitting under two ordering policies; sequential ordering and sequentail delivery. The effects of regualtion parameters and demand variability on costs and carbon emissions are analyzed under each policy. Furthermore, single sourcing, sequential ordering, and sequential delivery will be compared in terms of costs and carbon emissions.
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