The carbon-constrained EOQ model under the cap-and-trade regulation considering the consumers' low-carbon awareness

Under the background of low-carbon economy, firms worldwide have to adjust their operations, including inventory operation, to adapt to the carbon emission regulation. The carbon emission regulation policies have marked influences on inventory systems. In addition, as an exogenous variable, the customers' low-carbon awareness can also affect the inventory optimization through emission-sensitive demand. 'Ibis paper incorporates the cap-and-trade regulation and the consumers' low-carbon awareness into the classical (Economic Order Quantity) EOQ model and investigates their influences on the optimal order size, the emission level and total cost. These influences are presented by a serial of theorems. Numerical examples provide more support for these analytical conclusions. Some managerial insights can be derived from the analytical results and numerical examples.