The optimal retailer ordering quantity and investment of green technology under carbon emission regulation policy

The effect of the carbon emission policy, bringing new challenges and higher levels of difficulties in the company operation. Not like the traditional way of inventory mechanism to minimize the cost, but consider the effect toward the environment in the inventory management. The most research of economic order quantity model apply into retailer aspect, only consider carbon emission and regulation policies. Didn’t include the people who raise the concept of environmental protection and via invest the green technology to reduce the carbon emission. Therefore, the study stands at the point of the retailer. From the carbon emission restriction formulated by the government to the consumer who raise their conscious of green and environmental protection. The purpose is to maximize the profit of the company and find the optimum quantity to order and the amount to invest. Develop the mode to solve the best value of the model. Finally, the numerical analysis is done. According to the result of the analysis we find that investment of the green technology can indeed reduce the carbon emission and the carbon tax. But we should take the efficiency of green technology in reducing emissions, decreasing return parameter, price sensitivity and the carbon emission elasticity in to consider. In case the little reduction level of the carbon emission will affect the market demand and the company profit. The study according to the result of the research, find out the management meaning and the related suggestion.