Applying a mathematical programming approach for a green product mix decision

Abstract

The aim of this paper is to develop a mathematical model for a green product mix decision that incorporates capacity expansion features by using a mathematical programming approach. In order to satisfy customer orders when market demands exceed the company's production capacity, as well as maximise total profits, companies must study the feasibility of expanding capacity with regard to the production of parts. To place efficient controls on green product costs, we present the green product mix decision model for evaluating the benefits of expanding various types of capacity. By applying this model, companies that produce green products can make optimal decisions about further processing and capacity expansion.