Optimal inventory control with consideration for LCA

Kenichi Nakashima*, Surendra M. Gupta

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution


This paper proposes a new performance evaluation approach to an inventory management system based on an environmental conscious manufacturing system such as a remanufacturing system with consideration for Life Cycle Assessment (LCA). We here formulate an inventory system with single item based on newsboy problem. The system is evaluated by the total cost that includes the holding, the backlogged, the disposal and the CO2 penalty costs. In this approach, we consider two types of inventories: one is the actual product inventory in a factory whereas the other is the LCA inventory that denotes CO2 emission for all the life cycle of the product. This model also includes disposal and recycle rates. Using the suggested model, we can obtain the total inventory cost with consideration for the environment. Numerical examples are considered to illustrate the implementation of the methodology.

Original languageEnglish
Title of host publicationEnvironmentally Conscious Manufacturing VI
Publication statusPublished - 2006 Dec 1
Externally publishedYes
EventEnvironmentally Conscious Manufacturing VI - Boston, MA, United States
Duration: 2006 Oct 12006 Oct 3

Publication series

NameProceedings of SPIE - The International Society for Optical Engineering
ISSN (Print)0277-786X


ConferenceEnvironmentally Conscious Manufacturing VI
Country/TerritoryUnited States
CityBoston, MA


  • Inventory
  • Life cycle assessment
  • Optimal control

ASJC Scopus subject areas

  • Electronic, Optical and Magnetic Materials
  • Condensed Matter Physics
  • Computer Science Applications
  • Applied Mathematics
  • Electrical and Electronic Engineering


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