Optimal production decisions for remanufacturing end-of-life products under quality uncertainty and a carbon cap-and-trade policy

2021 ◽  
Vol 162 ◽  
pp. 107646
Author(s):  
Pengfei Zhao ◽  
Qianwang Deng ◽  
Juan Zhou ◽  
Wenwu Han ◽  
Guiliang Gong ◽  
...  
Keyword(s):  
Trade Policy ◽  
End Of Life ◽  
Quality Uncertainty ◽  
Cap And Trade ◽  
Optimal Production ◽  
Production Decisions

Joint Production and Pricing Strategy under Carbon Cap-and-Trade Policy

ICLEM 2014 ◽  
2014 ◽  
Author(s):  
Changsong Ma ◽  
Li Tan ◽  
Shucheng Zhou ◽  
Xiang Wang ◽  
Xinyi Zhang
Keyword(s):  
Trade Policy ◽  
Pricing Strategy ◽  
Joint Production ◽  
Cap And Trade

scholarly journals Achieve a low carbon supply chain through product mix

2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Carbon Emissions ◽  
Channel Structure ◽  
Low Carbon ◽  
Cap And Trade ◽  
Product Mix ◽  
Content Type ◽  
Carbon Supply ◽  
Trade Offs

Purpose In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy. Design/methodology/approach The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain. Findings The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability. Originality/value The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.

scholarly journals When a National Cap-and-Trade Policy with Carve-out Provision May Be Preferable to a National CO2 Tax

2015 ◽  
Vol 36 (3) ◽  
Author(s):  
Megan H. Accordino ◽  
Deepak Rajagopal
Keyword(s):  
Trade Policy ◽  
Cap And Trade ◽  
Co2 Tax

scholarly journals Research on Production Strategy with Carbon Emissions

2013 ◽  
Vol 7 (1) ◽  
pp. 9-13
Author(s):  
Honglei Tang ◽  
Guofang Song
Keyword(s):  
Numerical Experiment ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Production Model ◽  
Emission Permits ◽  
Optimal Production ◽  
Production Decisions ◽  
Manufacturing Enterprises ◽  
Production Strategy

This paper mainly studied the influence on the carbon emission permits and trading on the production strategy for manufacturing enterprises. The enterprises might obtain carbon emission permits in three different ways, i.e. government quota, market trading and purification treatment. The enterprises must make a tradeoff between them. The characteristic of purifying cost was analyzed. Then, an optimal production model with carbon emission permits and trading was established. Finally, a typical numerical experiment was employed to show the influence of the parameters on optimal production decisions.

scholarly journals Optimal MTS and MTO Hybrid Production System for a Single Product Under the Cap-And-Trade Environment

2020 ◽  
Vol 12 (6) ◽  
pp. 2426
Author(s):  
Shouyao Xiong ◽  
Yuanyuan Feng ◽  
Kai Huang
Keyword(s):  
Production System ◽  
Optimal Solution ◽  
Cap And Trade ◽  
Single Product ◽  
Optimal Production ◽  
Production Mode ◽  
Hybrid Production ◽  
Allowance Trading ◽  
Production Strategy ◽  
Production Decision

This paper studies the optimal production planning in a hybrid Make-To-Stock (MTS) and Make-To-Order (MTO) production system for a single product under the cap-and-trade environment. The manufacturer aims to minimize the total cost in production, inventory and emissions allowances trading. The decisions include the selection of production mode (pure MTS, pure MTO or hybrid MTS/MTO), the inventory and emissions trading quantity. We derive the optimal solution analytically. We show that the cost of optimal MTO/MTS hybrid production strategy is remarkably less than that of either pure MTO or pure MTS production strategy alone. Compared with the no initial carbon quota and trading environment, there are significant differences in the optimal production decisions under trading environment. When the emissions cost is a source of costs, the manufacturer has to face more costs pressure even if there is no emissions allowance trading. In particular, the results show that the initial emissions allowance determines the optimal production decision and emissions allowance trading decision in cases where the difference between the inventory cost for per unit product and the delayed delivery cost for per unit order is between the minimum and the maximum emissions cost and has no effect on production mode and emissions allowances trading decision in other cases. These conclusions will provide optimal production decision and carbon trading decision for the manufacture under a cap-and-trade environment.

Analytics of cap-and-trade policy for dual supply chain network structures

2020 ◽  
Vol 22 (10) ◽  
pp. 1999-2021
Author(s):  
Umangi Pathak ◽  
Ravi Kant ◽  
Ravi Shankar
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Network Structures ◽  
Supply Chain Network ◽  
Cap And Trade

Vehicle routing analyses with integrated order picking and delivery problem under carbon cap and trade policy

2019 ◽  
Vol 43 (2) ◽  
pp. 223-243 ◽  
Author(s):  
Sanjay Jharkharia ◽  
Chiranjit Das
Keyword(s):  
Sensitivity Analysis ◽  
Trade Policy ◽  
Vehicle Routing ◽  
Carbon Footprint ◽  
Order Picking ◽  
Mixed Integer ◽  
Vehicle Speed ◽  
Cap And Trade ◽  
Content Type ◽  
Total Cost

Purpose The purpose of this study is to model a vehicle routing problem with integrated picking and delivery under carbon cap and trade policy. This study also provides sensitivity analyses of carbon cap and price to the total cost. Design/methodology/approach A mixed integer linear programming (MILP) model is formulated to model the vehicle routing with integrated order picking and delivery constraints. The model is then solved by using the CPLEX solver. Carbon footprint is estimated by a fuel consumption function that is dependent on two factors, distance and vehicle speed. The model is analyzed by considering 10 suppliers and 20 customers. The distance and vehicle speed data are generated using simulation with random numbers. Findings Significant amount of carbon footprint can be reduced through the adoption of eco-efficient vehicle routing with a marginal increase in total transportation cost. Sensitivity analysis indicates that compared to carbon cap, carbon price has more influence on the total cost. Research limitations/implications The model considers mid-sized problem instances. To analyze large size problems, heuristics and meta-heuristics may be used. Practical implications This study provides an analysis of carbon cap and price model that would assist practitioners and policymakers in formulating their policy in the context of carbon emissions. Originality/value This study provides two significant contributions to low carbon supply chain management. First, it provides a vehicle routing model under carbon cap and trade policy. Second, it provides a sensitivity analysis of carbon cap and price in the model.

scholarly journals Profit Distribution Model for Construction Supply Chain with Cap-and-Trade Policy

2019 ◽  
Vol 11 (4) ◽  
pp. 1215 ◽  
Author(s):  
Wen Jiang ◽  
Wenfei Lu ◽  
Qianwen Xu
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Cap And Trade ◽  
Carbon Emission Reduction ◽  
Profit Distribution ◽  
General Contractor ◽  
Cost Coefficient ◽  
Pure Competition

Cap-and-trade has become one of the most widely used carbon emission limitation methods in the world. Its constraints have a great impact on the carbon emission reduction decisions and production operations of supply chain enterprises, as well as profit distribution. In the construction supply chain, there are few studies on the profit distribution and emission reduction decisions considering cap-and-trade policy. This paper investigates the profit distribution model of a two-echelon construction supply chain consisting of a general contractor and a subcontractor with cap-and-trade policy. Using game theory and Shapley value method, the optimal emission reduction decisions and profit distribution under three cooperation modes of pure competition, co-opetition, and pure cooperation are obtained, respectively. The research shows that the profits of the construction supply chain are increasing in pure competition, co-opetition, and pure cooperation scenarios, and the emission reduction amount of the construction supply chain in the case of pure cooperation is greater than that of pure competition and co-opetition. The carbon emission reduction amount under the co-opetition scenario is not always greater than that under the pure competition scenario, which depends on the emission reduction cost coefficient relationship of general contractor and subcontractor. When the cost coefficient of emission reduction of the general contractor is less than that of the subcontractor, the emission reduction amount under pure competition is larger than that under co-opetition. A numerical study is carried out to verify the conclusions and illustrated the profits of the supply chain decreased with the increase of carbon emission reduction cost coefficient, and had nothing to do with the emission reduction efficiency of enterprises.

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