Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies

We focus on the joint production planning of complex supply chains facing stochastic demands and being constrained by carbon emission reduction policies. We pick two typical carbon emission reduction policies to research how emission regulation influences the profit and carbon footprint of a typical...

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Main Authors: Longfei He, Zhaoguang Xu, Zhanwen Niu
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2014/361923
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author Longfei He
Zhaoguang Xu
Zhanwen Niu
author_facet Longfei He
Zhaoguang Xu
Zhanwen Niu
author_sort Longfei He
collection DOAJ
description We focus on the joint production planning of complex supply chains facing stochastic demands and being constrained by carbon emission reduction policies. We pick two typical carbon emission reduction policies to research how emission regulation influences the profit and carbon footprint of a typical supply chain. We use the input-output model to capture the interrelated demand link between an arbitrary pair of two nodes in scenarios without or with carbon emission constraints. We design optimization algorithm to obtain joint optimal production quantities combination for maximizing overall profit under regulatory policies, respectively. Furthermore, numerical studies by featuring exponentially distributed demand compare systemwide performances in various scenarios. We build the “carbon emission elasticity of profit (CEEP)” index as a metric to evaluate the impact of regulatory policies on both chainwide emissions and profit. Our results manifest that by facilitating the mandatory emission cap in proper installation within the network one can balance well effective emission reduction and associated acceptable profit loss. The outcome that CEEP index when implementing Carbon emission tax is elastic implies that the scale of profit loss is greater than that of emission reduction, which shows that this policy is less effective than mandatory cap from industry standpoint at least.
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institution OA Journals
issn 1026-0226
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language English
publishDate 2014-01-01
publisher Wiley
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series Discrete Dynamics in Nature and Society
spelling doaj-art-244db2a8afb34c37add695d2cbcd13742025-08-20T02:04:41ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/361923361923Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement PoliciesLongfei He0Zhaoguang Xu1Zhanwen Niu2College of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaWe focus on the joint production planning of complex supply chains facing stochastic demands and being constrained by carbon emission reduction policies. We pick two typical carbon emission reduction policies to research how emission regulation influences the profit and carbon footprint of a typical supply chain. We use the input-output model to capture the interrelated demand link between an arbitrary pair of two nodes in scenarios without or with carbon emission constraints. We design optimization algorithm to obtain joint optimal production quantities combination for maximizing overall profit under regulatory policies, respectively. Furthermore, numerical studies by featuring exponentially distributed demand compare systemwide performances in various scenarios. We build the “carbon emission elasticity of profit (CEEP)” index as a metric to evaluate the impact of regulatory policies on both chainwide emissions and profit. Our results manifest that by facilitating the mandatory emission cap in proper installation within the network one can balance well effective emission reduction and associated acceptable profit loss. The outcome that CEEP index when implementing Carbon emission tax is elastic implies that the scale of profit loss is greater than that of emission reduction, which shows that this policy is less effective than mandatory cap from industry standpoint at least.http://dx.doi.org/10.1155/2014/361923
spellingShingle Longfei He
Zhaoguang Xu
Zhanwen Niu
Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies
Discrete Dynamics in Nature and Society
title Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies
title_full Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies
title_fullStr Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies
title_full_unstemmed Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies
title_short Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies
title_sort joint optimal production planning for complex supply chains constrained by carbon emission abatement policies
url http://dx.doi.org/10.1155/2014/361923
work_keys_str_mv AT longfeihe jointoptimalproductionplanningforcomplexsupplychainsconstrainedbycarbonemissionabatementpolicies
AT zhaoguangxu jointoptimalproductionplanningforcomplexsupplychainsconstrainedbycarbonemissionabatementpolicies
AT zhanwenniu jointoptimalproductionplanningforcomplexsupplychainsconstrainedbycarbonemissionabatementpolicies