Simulation-Based Impacts on Environment Costs Caused by Production Lot Size

In modern environment-oriented manufacturing, green environmental considerations are made in numerous phases of production operations. In this paper, the operation logic steps used to determine the production lot size in a production system based on an inventory level rule are structured and analyze...

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Bibliographic Details
Main Author: Zhao, Run
Other Authors: 2012 JSPS Asian CORE Program, Nagoya University and VNU University of Economics and Business
Format: Article
Language:English
Published: Đại học Kinh tế 2016
Subjects:
Online Access:http://repository.vnu.edu.vn/handle/VNU_123/14267
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Institution: Vietnam National University, Hanoi
Language: English
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Summary:In modern environment-oriented manufacturing, green environmental considerations are made in numerous phases of production operations. In this paper, the operation logic steps used to determine the production lot size in a production system based on an inventory level rule are structured and analyzed. Additionally, a new environmental management accounting method, Material Flow Cost Accounting (MFCA), is adopted to identify and calculate environmental waste hidden in the production processes. Moreover, a simulation model integrating the two methods described above is constructed. Based on the simulation data, the effect of the relationship between production lot size and negative product costs is determined. The impact curve demonstrates a regular trend. From the results of the study, it is showed that different determination strategies for production lot size have significant effects on environment costs.