Joint optimal production planning for complex supply chains constrained by carbon emission abatement policies

DOI10.1155/2014/361923MaRDI QIDQ2321377zbMATH OpenOpenAlexWikidataFDO

Authors Longfei He, Zhaoguang Xu, Zhanwen Niu

Publication date 23 August 2019

Published in Discrete Dynamics in Nature and Society (Search for Journal in Brave)

Copyright license Creative Commons Attribution 3.0 Unported

Full work available at URL https://doi.org/10.1155/2014/361923

Mathematics Subject Classification ID

Transportation, logistics and supply chain management (90B06) Environmental economics (natural resource models, harvesting, pollution, etc.) (91B76)

Review text

Summary: We focus on the joint production planning of complex supply chains facing stochastic demands and being constrained by carbon emission reduction policies. We pick two typical carbon emission reduction policies to research how emission regulation influences the profit and carbon footprint of a typical supply chain. We use the input-output model to capture the interrelated demand link between an arbitrary pair of two nodes in scenarios without or with carbon emission constraints. We design optimization algorithm to obtain joint optimal production quantities combination for maximizing overall profit under regulatory policies, respectively. Furthermore, numerical studies by featuring exponentially distributed demand compare systemwide performances in various scenarios. We build the ``carbon emission elasticity of profit (CEEP) index as a metric to evaluate the impact of regulatory policies on both chainwide emissions and profit. Our results manifest that by facilitating the mandatory emission cap in proper installation within the network one can balance well effective emission reduction and associated acceptable profit loss. The outcome that CEEP index when implementing Carbon emission tax is elastic implies that the scale of profit loss is greater than that of emission reduction, which shows that this policy is less effective than mandatory cap from industry standpoint at least.

Recommendations

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Cites work

• Quick response strategy based joint dynamic production optimization for a complicated supply chain under internally intertwined demand dependence
• The carbon-constrained EOQ

Cited in

(8)

• Collaborative model for a two-echelon supply chain with uncertain demand under carbon tax policy
• The impact of transport mode and carbon policy on low-carbon retailer
• Robust decisions for regulated sustainable manufacturing with partial demand information: mandatory emission capacity versus emission tax
• Influences of carbon emission abatement on firms' production policy based on newsboy model
• Dual-mode production planning for manufacturing with emission constraints
• Optimal inventory control policy and supply chain coordination problem with carbon footprint constraints
• scientific article; zbMATH DE number 7453722 (Why is no real title available?)
• Joint Optimization of Multiple Supply Chains Under Cap-And-Trade Regulation: A Bi-Level Programming Model and Solution Algorithm

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