An analysis of voluntary recycled content claims under demand benefit and uncertain recycled input supply

• Published in: Operations research letters Vol. 48; no. 3; pp. 249 - 256
• Main Authors: Vedantam, Aditya, Iyer, Ananth V.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01-05-2020
• Subjects: Flexibility; Inventory management; Recycled content claims; Stochastic dynamic programming; Supply uncertainty; Inventory management; Stochastic dynamic programming; Supply uncertainty; Flexibility; Recycled content claims
• ISSN: 0167-6377; 1872-7468
• DOI: 10.1016/j.orl.2020.03.007

We focus on the problem of choosing the optimal recycled content claim under stochastic local recycled content availability under two claim types — period specific (when claims have to hold each period) and average (when claims are evaluated across periods). We show conditions under which specific claims are higher than average claims, and explore cases where the optimal claims and profits are aligned to be in the same direction.