Low-carbon Supply Chain Network Design For Carbon Reduction Investment Optimization

The issue of global climate change has become the focus of attention of the entireinternational community, a large number of scientific studies have shown that carbondioxide and other greenhouse gases are the main cause of global warming, and thewarming of the climate in turn affects the survival of human beings and its futuredevelopment. In order to effectively control the emissions of carbon dioxide and othergreenhouse gases, a new economic model called low-carbon economy which is basedon "low power","pollution","low emission" is proposed and been vigorouslyadvocated. The so-called low-carbon economy refers to the mode of economicdevelopment in a low carbon emission, and its essence is to improve energy efficiencyand create clean energy structure, its core is technology innovation, system innovationand the transformation of the concept of development.Under the environment of low-carbon economy, we studied the design andoptimization of the low-carbon supply chain network. Different corporations havedifferent efficiencies and benefits in carbon reduction processes, and we take thisdifference of marginal benefit into our consideration. We are interested in theenvironmental investments decisions in the design phase and propose amulti-objective optimization model that captures the trade-off between the total costand the environmental influence. In our model we incorporated various factors suchas investment allocation, transportation routes, transportation modes, etc. Then weused the normalized normal constraint method to solve the model and conducted anumerical experiment to analyze the problem and to give our conclusions.Finally, by solving and comparison some numerical examples, we explored theconfiguration problem of carbon emission reduction investment, and effects oflow-carbon factors on the supply chain network structure. We found that theconsideration of low-carbon factors would change the enterprise’s own environmentalstandards and competitive advantage, and the author also found that as the low carbonconstraints enhanced, the structure of the supply chain will become more compact,and the supply chain network node enterprises will improve their level ofenvironmental protection.