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

Chenglin Hu, Junsong Bian () and Kin-Keung Lai ()
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Chenglin Hu: College of Intelligent Manufacturing, Tianjin Sino-German University of Applied Sciences, Tianjin 300350, China
Junsong Bian: Department of Supply Chain Management and Information Systems, Rennes School of Business, 2 Rue Robert d’Arbrissel, 35065 Rennes, France
Kin-Keung Lai: Industrial and Manufacturing Systems Engineering Department, Hong Kong University, Hong Kong

Mathematics, 2023, vol. 11, issue 15, 1-22

Abstract: 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.

Keywords: low-carbon supply chain; carbon emission regulations; decentralized decision-making; carbon quota sharing; joint production planning (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
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