Industrial Engineering Journal ›› 2017, Vol. 20 ›› Issue (4): 94-100.doi: 10.3969/j.issn.1007-7375.e17-2025

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Two-echelon Supply Chain Production and Inventory Decision under Carbon Emission Constraint

YI Dongbo1, ZHANG Xiong2, HU Chao1, XIE Dasheng1   

  1. 1. School of Business Administration, Nanchang Institute of Technology, Nanchang 330099, China;
    2. School of Business Administration, South China University of Technology, Gguangzhou 510640, China
  • Received:2017-02-17 Online:2017-08-30 Published:2017-09-08

Abstract: To explore how to make decisions based on different carbon policies to achieve the goal of minimizing the total cost, two-echelon supply chain production and inventory decision is considered under the three carbon policy constraints. Through a detailed study of the models under different carbon policies, it is proved that for the cooperative two-echelon supply chain companies, adopting a reasonable carbon policy can significantly reduce carbon emissions without significantly increasing the total costs. Meanwhile, under the policy of carbon cap-and-trade, the carbon's price is raising which stimulates enterprises to reduce carbon emission. Under the policy of carbon cap, it is found that the lower and upper bounds of E and the carbon emission can be strictly controlled. Also the carbon cap and trade policy can make the production of enterprises more flexible. Finally, these conclusions are verified by numerical experiments.

Key words: carbon emission, two-echelon supply chain, production and inventory decision, cooperation enterprise

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