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Optimal Production Planning Strategy for Deteriorating Items in Terms of Emission Tax, Pollution, and R&D Investment

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Emerging Challenges in Business, Optimization, Technology, and Industry

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

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Abstract

Firms are faced with the question of what policies to implement to ensure efficient abatement behavior? In this paper, we aim to determine the optimal production rate and the optimal investment rate in pollution abatement technology. The situation is modeled as an optimal control problem with two state variables and two control variables. The optimal trajectories, the optimal control, and the optimal objective function value are obtained explicitly in both cases where the firm adopts either a continuous-review policy or a periodic-review policy. A numerical example is presented.

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Author information

Authors and Affiliations

  1. Information Systems and Decision Sciences Department, Fairleigh Dickinson University, Vancouver, BC, Canada

    Lotfi Tadj

  2. Administrative Sciences Department, Fairleigh Dickinson University, 842, Cambie Street, Vancouver, BC, V6B2P6, Canada

    Ajay K. Garg

  3. Department of Mathematics, Qatar University, Doha, Qatar

    Abdelouahed Hamdi

Authors
  1. Lotfi Tadj
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  2. Ajay K. Garg
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  3. Abdelouahed Hamdi
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Corresponding author

Correspondence to Lotfi Tadj .

Editor information

Editors and Affiliations

  1. Information Systems and Decision Sciences Department, Fairleigh Dickinson University, Vancouver, British Columbia, Canada

    Lotfi Tadj

  2. Administrative Sciences Department, Fairleigh Dickinson University, Vancouver, British Columbia, Canada

    Ajay K. Garg

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Tadj, L., Garg, A.K., Hamdi, A. (2018). Optimal Production Planning Strategy for Deteriorating Items in Terms of Emission Tax, Pollution, and R&D Investment. In: Tadj, L., Garg, A. (eds) Emerging Challenges in Business, Optimization, Technology, and Industry. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-58589-5_8

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