Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation
Integrating low-carbon design into products is crucial for reducing carbon emissions throughout their life cycle and promoting sustainable development. Addressing the uncertainty in the carbon footprint resulting from the unknown choice of product material solutions. This paper considers ABC (activi...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-11-01
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| Series: | Mathematics |
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| author | Huo-Yen Tseng Yung-Fu Huang Chung-Jen Fu Ming-Wei Weng |
| author_facet | Huo-Yen Tseng Yung-Fu Huang Chung-Jen Fu Ming-Wei Weng |
| author_sort | Huo-Yen Tseng |
| collection | DOAJ |
| description | Integrating low-carbon design into products is crucial for reducing carbon emissions throughout their life cycle and promoting sustainable development. Addressing the uncertainty in the carbon footprint resulting from the unknown choice of product material solutions. This paper considers ABC (activity-based costing) along with the components’ carbon footprint and scrap return issues to illustrate the above challenge in a two-stage production-inventory system with imperfect processes. We determine the optimal production and sales strategies that maximize total profit per unit time. An algorithm is developed to identify these optimal solutions. To illustrate the effectiveness of the proposed model and algorithm, two numerical examples from the Taiwan die casting industry are presented. Additionally, a sensitivity analysis is conducted to provide valuable managerial insights. |
| format | Article |
| id | doaj-art-5768a38e5f8b4da29fa534beb76b79ec |
| institution | OA Journals |
| issn | 2227-7390 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj-art-5768a38e5f8b4da29fa534beb76b79ec2025-08-20T01:53:57ZengMDPI AGMathematics2227-73902024-11-011222356710.3390/math12223567Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade RegulationHuo-Yen Tseng0Yung-Fu Huang1Chung-Jen Fu2Ming-Wei Weng3Department of Business Administration, Chaoyang University of Technology, Taichung 413310, TaiwanDepartment of Marketing and Logistics Management, Chaoyang University of Technology, Taichung 413310, TaiwanDepartment of Business Administration, Chaoyang University of Technology, Taichung 413310, TaiwanDepartment of Marketing and Logistics Management, Chaoyang University of Technology, Taichung 413310, TaiwanIntegrating low-carbon design into products is crucial for reducing carbon emissions throughout their life cycle and promoting sustainable development. Addressing the uncertainty in the carbon footprint resulting from the unknown choice of product material solutions. This paper considers ABC (activity-based costing) along with the components’ carbon footprint and scrap return issues to illustrate the above challenge in a two-stage production-inventory system with imperfect processes. We determine the optimal production and sales strategies that maximize total profit per unit time. An algorithm is developed to identify these optimal solutions. To illustrate the effectiveness of the proposed model and algorithm, two numerical examples from the Taiwan die casting industry are presented. Additionally, a sensitivity analysis is conducted to provide valuable managerial insights.https://www.mdpi.com/2227-7390/12/22/3567sustainable supply chaincarbon footprintactivity-based costingcarbon priceEPQ |
| spellingShingle | Huo-Yen Tseng Yung-Fu Huang Chung-Jen Fu Ming-Wei Weng Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation Mathematics sustainable supply chain carbon footprint activity-based costing carbon price EPQ |
| title | Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation |
| title_full | Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation |
| title_fullStr | Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation |
| title_full_unstemmed | Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation |
| title_short | Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation |
| title_sort | optimal carbon pricing and carbon footprint in a two stage production system under cap and trade regulation |
| topic | sustainable supply chain carbon footprint activity-based costing carbon price EPQ |
| url | https://www.mdpi.com/2227-7390/12/22/3567 |
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