Multi-item production planning with carbon cap and trade mechanism

Zhang, Bin; Liang, Xin

doi:10.1016/j.ijpe.2013.01.024

Cited by 261 publications

(123 citation statements)

References 24 publications

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“…Focusing on the inventory models, Bouchery et al [13] revisit the classical economic order quantity model with the consideration of sustainability concerns. Zhang and Xu [14] study a production planning problem with carbon cap-and-trade regulation, where both the optimal production quantities and the corresponding carbon trading quantity are determined. Chen and Wang [15] study the effects of carbon emission regulations on the optimal ordering and the transportation mode selection.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Investment in a Supply Chain in the Big Data Era: An Information Updating Approach

et al. 2018

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Abstract:We are now living in the big data era, where firms can improve their decision makings by adopting big data technology to utilize mass information. To explore the effects of the big data technology, we build an analytical model to study the sustainable investment in a supply chain, consisting of one manufacturer and one retailer, by using Bayesian information updating approach. We derive the optimal sustainable investment level for the manufacturer and the optimal order quantity for the retailer. Comparing the results with and without the big data technology, we find that whether the manufacturer should make more sustainable investment when the retailer adopts the big data technology depends on the service level at the retailer side. Interestingly, it is not always optimal for the retailer to adopt the big data technology. We identify the conditions under which the manufacturer and retailer are better off with the big data technology. In addition, we investigate the impact of the number of observations regarding the market information and find that the optimal decisions and profits increase in the number of the observations, if and only if the service level is low.

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Section: Literature Reviewmentioning

confidence: 99%

Sustainable Investment in a Supply Chain in the Big Data Era: An Information Updating Approach

et al. 2018

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“…Jaber et al [13] studied the production-inventory decisions in a two-level (vendor-buyer) supply chain context with cap-and-trade regulation, and they illustrated the behavior of the supply chain cost function for several possible scenarios by using numerical examples. Zhang and Xu [14] investigated the multi-item production planning with carbon cap-and-trade mechanism, and analyzed the impact of carbon trading price on the firm's optimal production and the total carbon emissions. Du et al [15] investigated the optimal decisions on permits pricing and production quantity for an emission-dependent supply chain under the cap-and-trade mechanism, and they concluded several managerial implications by numerical example and sensitivity.…”

Section: Literature Reviewmentioning

confidence: 99%

Joint Pricing and Product Carbon Footprint Decisions and Coordination of Supply Chain with Cap-and-Trade Regulation

2018

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Abstract:The implementation of cap-and-trade regulation worldwide is bound to have some effects on supply chain decision-making. This paper investigates optimal pricing and product carbon footprint decisions of the supply chain consisting of a manufacturer and a retailer under cap-and-trade regulation by applying optimization and game theory. By comparing the optimal results between the centralized and decentralized decision-making models, we find that the optimal product carbon footprint and selling price not only depend on the carbon trading price and carbon cap allocated by the government, but also relate to the initial carbon footprint of the product and the decision-making methods in the supply chain. It is found that there is also a "double marginalization" in the decentralized situation, thus we coordinate the supply chain using a two-part tariff contract. Specifically, only the manufacturer adjusts dynamically the wholesale price and fixed fee within the coordinating contract according to different initial carbon footprint and the range of the carbon cap reduction by the government. Finally, we obtain several interesting conclusions from the numerical examples and provide managerial insights and policy implications from the analytical results.

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“…The study of Plambeck (2012) suggests that tremendous changes in supply chain design and operation are required to avert climate change and explains through case studies that how carbon emissions can be reduced profitably in supply chains. Furthermore, a few studies integrate carbon emissions concerns in forward supply chain problems such as network design, production planning, product mix and supplier selection (Jin et al, 2014;Zhang and Xu, 2013;Chaabane et al, 2012;Shaw et al, 2012;Bai and Sarkis, 2010;Letmathe and Balakrishnan, 2005;Gong and Zhou, 2013) and others investigate its impact on supply chain structures and transportation mode selection (Cachon, 2011;Hoen et al, 2014). Some studies incorporate emission concerns in inventory lot-sizing decision whichnot only influences total system-wide cost,customer service levels and carbon emissions significantly, but also affects other decisions such as packaging, waste and location (Bonney and Jaber, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Non-stationary stochastic inventory lot-sizing with emission and service level constraints in a carbon cap-and-trade system

Purohit

Shankar

Dey

et al. 2016

Journal of Cleaner Production

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Multi-item production planning with carbon cap and trade mechanism

Cited by 261 publications

References 24 publications

Sustainable Investment in a Supply Chain in the Big Data Era: An Information Updating Approach

Sustainable Investment in a Supply Chain in the Big Data Era: An Information Updating Approach

Joint Pricing and Product Carbon Footprint Decisions and Coordination of Supply Chain with Cap-and-Trade Regulation

Non-stationary stochastic inventory lot-sizing with emission and service level constraints in a carbon cap-and-trade system

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