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IMPACT OF FUEL PRICE AND EMISSIONS ON INVENTORY POLICIES

Amulya Gurtu, Mohamad Y. Jaber , Cory Searcy

The provided research paper, "Impact of fuel price and emissions on inventory policies,"
examines how fuel price and emissions affect inventory decisions in supply chains. The paper
discusses the need to incorporate the cost of transportation emissions into a carbon tax, as
well as the impact on supply chain costs. It also investigates the link between energy,
inventory, and transportation, emphasizing the significance of developing environmentally
responsible inventory models. The authors create a model that takes into account the rise in
fuel prices and its impact on inventory decisions, including a detailed analysis of the various
cost components involved. The paper also discusses the impact of fuel price trends, the
concept of "peak oil," and how rising energy demand affects fuel prices.

The study provides a comprehensive analysis of how fuel prices and emissions affect
inventory policies in supply chains. It discusses the need to strengthen and harmonies global
environmental strategies, with a focus on incorporating the cost of transportation emissions
via a carbon tax. The paper also includes a detailed model that takes into account the increase
in fuel prices and its impact on inventory decisions, making an important contribution to the
existing literature on environmentally responsible inventory management.

The authors' work is based on an extensive review of the existing literature, which includes
models developed by other researchers such as Banerjee, Goyal, Hill, Braglia, and Zavanella.
The paper extends and modifies these models to account for how fuel prices and emissions
affect inventory decisions. The research paper's detailed analysis and modelling approach
contribute significantly to the field of supply chain management and environmental
sustainability.

Finally, the research paper "Impact of fuel price and emissions on inventory policies" offers
a thorough examination of the effects of fuel price and emissions on inventory decisions in
supply chains. The paper emphasises the importance of environmentally responsible
inventory models and provides a detailed model that takes into account fuel price increases
and their impact on inventory decisions. The authors' work contributes significantly to the
existing literature on supply chain management and environmental sustainability, offering
valuable insights to researchers and practitioners in the field.