The Study Of Manufacturers' Remanufacturing Production Strategies With Carbon Emission Policies

The increased awareness of environmental protection and the policy relating to carbon emissions have resulted in manufacturers viewing carbon emissions as one of the most critical elements affecting production decisions.As a gradually maturing production form,remanufacturing plays an increasingly pivotal role in economy,environment and society.Remanufacturing and carbon emission policies have changed the structure of manufacturer's production and inventory cost.This paper combines EOQ and EPQ model,considering manufacturing and remanufacturing and builds inventory cost function;at the same time,also considers carbon emissions in(re)manufacturing activities and product transportation and builds cost model with carbon constraints.Therefore,we build systematically(re)manufacturer's inventory cost model with carbon constraints.The optimal production decision and minimum cost are researched under the case of remanufacturing or no remanufacturing respectively.The optimal batch and quantity of manufacturing/remanufacturing and the number of products remanufactured are derived with and without carbon constraints through analyses of the model.At the same time,this paper investigates the impact of carbon quota,carbon transaction prices,remanufacturing ratio and different means of transportation on manufacturers' decisions.The examples show that the cost of manufacturer under remanufacturing is indeed lower than the cost of manufacturing.The batch of manufacturing and remanufacturing is identical within the period with carbon constraints;the batch of manufacturing without carbon constraints is less than that of remanufacturing with carbon constraints;the results are just the opposite in terms of the batch of remanufacturing and the number of remanufactured products.In other words,the(re)manufacturers' total cost and carbon emissions with carbon constraints(especially cap-and-trade)are lower than those without carbon constraints.Starting from the real-life circumstances,this article considers manufacturers' total cost with imperfect remanufacturing,various means of transportation,carbon quota,and carbon trade,which have not been taken into account previously,the manufacturer's optimal decisions are derived.In theory,this paper improves the manufacturer's inventory cost model under imperfect remanufacturing and new-builds cost function of the manufacturer with carbon emissions and systematically presents the manufacturer's total cost function based on a combination of remanufacturing and carbon emissions.In practice,the analysis of remanufacturing and carbon emission can support the government's carbon policy and the production decisions of enterprises to some extent.