Module-Based Product Configuration Decisions Considering Both Economical and Carbon Emission-Related Environmental Factors

Dong Yang, Jia Li, Bill Wang and Yong-ji Jia
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Dong Yang: School of Business and Management, Donghua University, Shanghai 200051, China
Jia Li: School of Business and Management, Donghua University, Shanghai 200051, China
Bill Wang: Business Information Systems Department, Auckland University of Technology, Auckland 1010, New Zealand
Yong-ji Jia: School of Business and Management, Donghua University, Shanghai 200051, China

Sustainability, 2020, vol. 12, issue 3, 1-13

Abstract: With an increasing demand for green and environmentally friendly products, configuring a customized product from modular product design to satisfy both individualized customer requirements and environment restrictions has become a vital task for mass customization. In this paper, we addressed a module-based product configuration problem under carbon emission regulation, i.e., carbon cap-and-trade schema. The configuration problem under carbon cap-and-trade schema was formulated as a mixed-integer programming problem. Due to the NP-hard characteristics of the model, a genetic algorithm was employed to solve the configuration problems under carbon cap-and-trade. Experiments were carried out to analyze the effects of carbon emissions on product configuration decisions and carbon purchasing decisions. As a result, the range for carbon emission cap is suggested for both manufacturers and government agency, which provides the decision supporting for both customized and low-carbon production and green manufacturing.

Keywords: product configuration; mass customization; product family; sustainable manufacturing; carbon emission policy; genetic algorithm (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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