Sustainable optimal production policies for an imperfect production system with trade credit under different carbon emission regulations

Mahato, Falguni; Mahato, Chandan; Mahata, Gour Chandra

doi:10.1007/s10668-022-02477-2

Cited by 18 publications

(4 citation statements)

References 45 publications

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“…In the future, different maintenance types and costs can be considered to be more consistent with actual scenarios. Lastly, this research can be extended by considering scenarios such as allowing shortages, trade credit, discounts on amounts, or other carbon-emission policies [27].…”

Section: Management Revelationsmentioning

confidence: 99%

Research on an Optimal Maintenance and Inventory Model Based on Carbon Tax Policy

Chen,

Lu,

Hsu

et al. 2024

Processes

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The equipment in a factory will gradually deteriorate during production, leading to the production of defective products. Without appropriate maintenance, the defect rate will increase over time. Consequently, the production cost will rise, the inventory quality will be affected, the profit will decrease, and the risk of carbon emissions will increase, leading to more customer complaints and damaging the corporate image. In addition to focusing on preventive maintenance to ensure the quality of products, companies should also take carbon emissions into consideration. Furthermore, the frequency of maintenance must be carefully considered, as both carbon emissions and maintenance costs will increase if the frequency is too high; conversely, if the maintenance frequency is too low or non-existent, the defect rate may increase cumulatively, or production may be suspended due to equipment failure. Therefore, this research explores preventive maintenance and inventory management issues within an imperfect production system and develops an extended economic production quantity model that incorporates defective products as well as taking carbon tax and preventive maintenance into consideration. The main purpose is to determine the optimal maintenance frequency, production, and replenishment cycle length, so as to maximize the total profit under the carbon tax policy. This study demonstrates a computing process with relatively impractical product data based on the actual business situation of a disposable diaper manufacturer. Furthermore, a sensitivity analysis is implemented to the model parameters in the proposed model. The managemental insights are illustrated based on the results of theoretical analysis to provide a reference to policy makers during decision making, hence, to secure the sustainability and green transitions of corporates. The results of this study not only help to reduce environmental impact but can also improve the competitiveness and sustainable development of enterprises.

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Section: Management Revelationsmentioning

confidence: 99%

Research on an Optimal Maintenance and Inventory Model Based on Carbon Tax Policy

Chen,

Lu,

Hsu

et al. 2024

Processes

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“…Further, Manna et al 25 formulated a production model of nondeteriorating item under warranty policy and emission taxation regulation. Recently, Pan et al, 26 Handayani et al, 27 Su et al, 28 Ghosh, 29 Alharbi, 30 Mahato et al, 31 Das et al, 32 and De-la-Cruz-Márquez et al 33 have recently published several production inventory models considering the effect of carbon emission. The production rate of the items that are directly engaged in the system's optimum policy is also known for production-based firms.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of emission and service constraint for an imperfect production system under two level Hamiltonian

Das

Ali

Shaikh

et al. 2023

Optim Control Appl Methods

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Considering the impact of emission on environment, over the last few decades, reduction of emission during production process (or emission free production process) appears to be one of the most growing preferences for every manufacturing firm. Again, manufacturing companies of different products are bounded to offer various facilities to their consumers in order to survive in the current highly competitive market situation. Primarily considering these two factors taken in to account, this study addresses an imperfect manufacturing inventory model in which customers' demand increases linearly w. r. to emission reduction level, service level from the manufacturer and decreases nonlinearly w. r. to price of the items. The analytical expressions of production rates, emission levels and service levels are derived by solving a number of optimum control problems using Hamiltonian maximum principle with a values for the business period and selling price. The basic goal is to maximize the average profit of the system. In addition, a number of numerical examples are considered to elaborate four distinct instances involved in the proposed model and these are solved numerically using teaching learning based optimization algorithm. Finally, sensitivity experiment is performed to investigate the influence of various system factors on the best‐found policies. The sensitivity analysis indicates that service rate provided by the manufacturer and selling price of the items impose a huge impact on the average profit of the system. Further, the carbon reduction affects the revenue of the system less significantly.

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“…Terefore, scholars have conducted in-depth studies on fnancing a low-carbon supply chain under capital constraints. For example, Wua et al [32], Cao et al [33], Zhang et al [34], and Mahato et al [35] explored the infuence of bank fnancing and trade credit fnancing on the optimal decision-making of low-carbon supply chain members with capital constraints. Qin et al [36] analyzed both green fnancing and cost-sharing contracts using the Stackelberg game model, considering manufacturers' capital constraints and the carbon cap-and-trade mechanism, and found that green fnance rates do not always adversely afect CER, and retailers' cost-sharing does not always have a positive impact on CER.…”

Section: Low-carbon Supply Chain With Capital Constraintsmentioning

confidence: 99%

Manufacturer’s Green Financing and CER Decisions under the Carbon Tax Policy and Capital Constraints

Zhang,

Song,

et al. 2023

Complexity

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This study constructs a two-echelon low-carbon supply chain consisting of a single manufacturer and a retailer. The manufacturer’s initial capital is zero. The study analyzes three financing modes of the manufacturer by using the Stackelberg game model: external financing (the EF mode), internal financing (the IF mode), and trade credit financing (the TC mode). We found that the IF mode is superior to the EF mode while inferior to the TC mode regarding carbon emission reduction (CER), market demand, and the manufacturer’s profit. Additionally, the IF mode is superior to the EF mode regarding the retailer and supply chain’s profits and special to the TC mode only when the loan and deposit interest rate meet the specific conditions. The best financing mode for the manufacturer is the TC mode, but he needs to give some compensation to the retailer in order to make the retailer cooperate with him. The impact of carbon tax rate changes on the equilibrium solutions in the three financing modes is not only related to the change range of the carbon tax rate itself but also closely related to the initial carbon emissions. A high carbon tax rate can help stimulate the cleaner manufacturer to reduce carbon emissions, but a moderate carbon tax rate is more applicable to the polluting manufacturer. A numerical example is given to demonstrate some of the conclusions. Finally, the study provides managerial insights based on the analytical results.

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Sustainable optimal production policies for an imperfect production system with trade credit under different carbon emission regulations

Cited by 18 publications

References 45 publications

Research on an Optimal Maintenance and Inventory Model Based on Carbon Tax Policy

Research on an Optimal Maintenance and Inventory Model Based on Carbon Tax Policy

Impact of emission and service constraint for an imperfect production system under two level Hamiltonian

Manufacturer’s Green Financing and CER Decisions under the Carbon Tax Policy and Capital Constraints

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