Research On Enterprises’ Manufacturing/Remanufacturing Production Decisions Under Carbon Emission Policies

With the growing trend of global warming, greenhouse gas emissions reduction has been highly concerned by the international community, and has become one of the most urgent issue to human beings. With the coming era of limits on carbon emissions, it’s imperative for industrial enterprises to change their production and operation into a low-carbon way, as well as their manufacturing mode. Low-carbon production is bound to be the new high ground for industrial enterprises to seize to create new competitive advantage. Remanufacturing as a mode of production with both economic benefits and low-carbon emissions is one of the most important ways to achieve both low-carbon operation and sustainable development, which has been a great concern of the government and enterprises. And many companies are actively involved in the remanufacturing, e.g. HP, Faw-Volkswagen, etc.The paper based on the enterprises operation of low-carbon emission perspective, focusing on the impact of external carbon emissions constraints on enterprises’ manufacturing/remanufacturing production decision-making process. First of all, models of enterprises manufacturing/remanufacturing production decisions with the integration of internal and external drive elements under carbon tax and carbon cap-and-trade mechanism are constructed by extending the traditional manufacturing/remanufacturing production decision modeling method. Secondly, the models are solved respectively to get the optimal production strategy. Moreover, relevant conclusions are obtained through further analysis of the optimal strategy. Then, a numerical experiment is focused on the analysis of the impact of carbon emission constrains such as carbon tax, carbon cap and carbon trading on manufacturing/remanufacturing production decision, the optimal production and pricing strategy, carbon emissions, carbon trading volume and gross profit. Finally, comparative analysis of both carbon tax and cap-and-trade mechanism show the differences of these two policy, low-carbon constrained production management insights from a business perspective and low-carbon-oriented policy recommendations from a government perspective are given at the end.