M.S Thesis Presentation by Sibel Sozuer

M.S. Thesis Presentation by
Sibel Sözüer
Department of Industrial Engineering
Bilkent UniversityIn this thesis we consider two problems in the newsvendor setting with multiple inputs, under a carbon emission constraint and non linear production functions. In the first problem, we assume a strict carbon cap and find the optimal production quantity and input allocation that will maximize the expected profit under this constraint. In the second problem, we consider an emission trading scheme where an advance purchase of carbon emission quota is made at an initial price before the random demand is realized. When the demand is realized and new carbon trade prices are revealed , it is possible to buy additional permits or to sell an excess amount. The aim is to decide on the optimal allocation of the inputs as well as the carbon trading policy so as to maximize the expected profit. In both problems, the production quantity is linked to multiple inputs via the Cobb-Douglas and Leontieff production functions. Optimal policy structure is derived and numerical examples are provided.

 

Keywords: Production, Newsvendor Problem, Inventory Management, Production Function, Multiple Inputs, Carbon Emission, Carbon Cap, Emission Trading, Cobb-Douglas, Leontieff.

 

This thesis is supervised by
Prof. Ülkü Gürler
Assoc. Prof. Emre Berk