Joint Optimal Production Planning in Supply Chains under Diverse Low-Carbon Policies

This paper studies the impact of diverse carbon emission regulations on optimal operation decisions by exploiting the economic production lot model of a multi-manufacturer system in a low-carbon environment. The optimal production planning for multiple enterprises in terms of cost optimization and c...

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Bibliographic Details
Published inMathematics (Basel) Vol. 11; no. 15; p. 3379
Main Authors Hu, Chenglin, Bian, Junsong, Lai, Kin-Keung
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.08.2023
Subjects
Carbon content
carbon emission regulations
Carbon offsets
carbon quota sharing
Clean technology
Costs
decentralized decision-making
Decision analysis
Decision making
Economic models
Emission analysis
Emission standards
Emissions
Emissions control
Emissions trading
Environmental tax
Inventory
Inventory control
Inventory management
joint production planning
Literature reviews
low-carbon supply chain
Mathematical programming
Optimization
Order quantity
Policies
Production planning
Regulation
Supply chains
Sustainable development
Taxation
Trade policy
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Summary:This paper studies the impact of diverse carbon emission regulations on optimal operation decisions by exploiting the economic production lot model of a multi-manufacturer system in a low-carbon environment. The optimal production planning for multiple enterprises in terms of cost optimization and carbon emission optimization are presented in various scenarios of the fully decentralized system under carbon taxation, cap and trade, and mandatory carbon cap. We prove a unified framework for modeling the scenarios enabled by carbon tax and cap-and-trade policies. Furthermore, the decision vector of the optimal production lot is obtained by analyzing the joint decision scenario based on shared carbon emission caps. We give a comparative analysis of two settings of fully decentralized and carbon quota sharing. The results show that the decision of joint production and stock preparation can reduce the total operational costs of the multi-enterprise system, but the realized carbon emissions may not change or only increase slightly. Our study provides a useful reference for government carbon emission regulation and enterprise operation decision optimization under carbon neutrality and a carbon peak environment.
ISSN:2227-7390
2227-7390
DOI:10.3390/math11153379