Integrated Inventory-Transportation Scheduling with Sustainability-Dependent Demand under Carbon Emission Policies

Table 2

Main notations.

Parameters	Meaning
	Fixed cost of inventory replenishment
	Holding cost per unit per year held in inventory
	Manufacturing cost per unit
	Transportation cost,
	Vehicle capacity
	Sale price
	Potential demand per year when S = 0
	Coefficient of the effect of sustainability on demand
	Coefficient of sustainable investment
	Actual demand per year,
	Carbon emission amount due to inventory replenishment
	Carbon emission amount due to holding a unit inventory per year
	Carbon emission amount due to transportation,
	Carbon policy index: n = 0 for no carbon, n = 1 for cap, n = 2 for tax, and n = 3 for cap-and-trade policies
	Carbon emission cap per year
	Carbon emission trading price per ton
	Carbon tax price per ton
	Social welfare
	Economic utility
	Environmental utility
Decision variables
	Order quantity
S	Sustainability level
Functions
	Average annual carbon emission function
	Average annual profit function