LAPSE:2021.0439
Published Article
LAPSE:2021.0439
Sustainable Production−Inventory Model in Technical Cooperation on Investment to Reduce Carbon Emissions
JiaLiang Pan, Chui-Yu Chiu, Kun-Shan Wu, Hsiu-Feng Yen, Yen-Wen Wang
May 26, 2021
Carbon cap-and-trade and carbon offsets are common and important carbon emission reduction policies in many countries. In addition, carbon emissions from business activities can be effectively reduced through specific capital investments in green technologies. Nevertheless, such capital investments are costly and not all enterprises can afford these investments. Therefore, if all members of a supply chain agree to share the investments in the facilities, the supply chain can reduce carbon emissions and generate more profit. Under carbon cap-and-trade and carbon tax policies, this study proposes a production−inventory model in which the buyer and vendor in the integrated supply chain agree to co-invest funds to reduce carbon emissions. We planned to integrate production, delivery, replenishment, and technology to reduce carbon emissions so as to maximize the total profit of the supply chain system. Several examples are simulated and the sensitivity analysis of the main parameters is carried out. The optimal solutions and joint total profit under various carbon emission policies are also compared. The future carbon emission control trend is expected to enable companies to share risks by co-investing and developing sustainable supply chains.
Keywords
carbon cap-and-trade, carbon tax, sustainable production–inventory model
Suggested Citation
Pan J, Chiu CY, Wu KS, Yen HF, Wang YW. Sustainable Production−Inventory Model in Technical Cooperation on Investment to Reduce Carbon Emissions. (2021). LAPSE:2021.0439
Author Affiliations
Pan J: College of Management, National Taipei University of Technology, Taipei 10608, Taiwan
Chiu CY: Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei 10608, Taiwan
Wu KS: Department of Business Administration, Tamkang University, Taipei 251301, Taiwan [ORCID]
Yen HF: Department of Accounting, Tamkang University, Tamsui, New Taipei City 251301, Taiwan
Wang YW: Department of Industrial Management, Chien Hsin University of Science and Technology, Taoyuan 320, Taiwan
Journal Name
Processes
Volume
8
Issue
11
Article Number
E1438
Year
2020
Publication Date
2020-11-11
Published Version
ISSN
2227-9717
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Original Submission
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PII: pr8111438, Publication Type: Journal Article
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LAPSE:2021.0439
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doi:10.3390/pr8111438
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May 26, 2021
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CC BY 4.0
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[v1] (Original Submission)
May 26, 2021
 
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May 26, 2021
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Original Submitter
Calvin Tsay
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