Two Products Manufacturer’s Production Decisions with Carbon Constraint

Li LU, Xu CHEN

Abstract


In this paper, we consider a manufacture which produces both ordinary products and green products in a monopoly market, and investigate his production decisions with carbon constraint. Firstly, we derive the manufacturer’s optimal production and maximum profit without carbon constraint. Then, we discuss the optimal production and maximum profit with carbon constraint in different situation. The results indicate that manufacturer’s optimal production and maximum profit with carbon constraint are less than them without carbon constraint, optimal production is an increasing function with carbon constraint.

Keywords


Production decision; Carbon constraint; Complete monopoly

References


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[3] Rong, A. Y., Lahdelma, R. CO2 emissions trading planning in combined heat and power production via multi-period stochastic optimization. European Journal of Operational Research, 176(3), 1874-1895.

[4] Du, S.F., Dong J. F., Liang, L., Zhang J. J. (2009). Optimal production policy with emission permits and trading. Chinese Journal of Management Science, 17(3), 81-86.

[5] Tsai, W. H., Lin, W. R., Fan, Y. W., Lee, P. L., Lin S. J., Hsu J. L. (2011) Applying a mathematical programming approach for a green product mix decision. International Journal of Production Research, DOI:10.1080/00207543.2011.5 55429.




DOI: http://dx.doi.org/10.3968/j.mse.1913035X20130701.2240

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