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Operational impact on the environment: Managing service systems with environmental deterioration

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  • Shi, Ye
  • Yu, Yugang
  • Wang, Lizhi

Abstract

We consider a dynamic environmental and marketing decision problem for natural service systems with environmental deterioration. Demand of the service is attracted by both the environmental quality and the marketing efforts, but customers also generate wastes that greatly degrade the environment. As a result, the manager of the service system may decide to make a cleaning up effort to help the environment recover in addition to its self-healing capability. The manager׳s objective is to maximize the net present value of the total profit over a planning horizon by determining both the environmental and marketing efforts in each period.

Suggested Citation

  • Shi, Ye & Yu, Yugang & Wang, Lizhi, 2015. "Operational impact on the environment: Managing service systems with environmental deterioration," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 310-320.
    • Handle: RePEc:eee:proeco:v:170:y:2015:i:pa:p:310-320
    DOI: 10.1016/j.ijpe.2015.09.005
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    Cited by:

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