Accepted Manuscript

Production and transportation outsourcing decisions in the supply chain under singleand multiple carbon policies

Jian Li, Qin Su, Li Ma

PII: S0959-6526(16)31498-6

DOI: 10.1016/j.jclepro.2016.09.157

Reference: JCLP 8117

To appear in: Journal of Cleaner Production

Received Date: 4 March 2016

Revised Date: 9 August 2016

Accepted Date: 19 September 2016

Please cite this article as: Li J, Su Q, Ma L, Production and transportation outsourcing decisions inthe supply chain under single and multiple carbon policies, Journal of Cleaner Production (2016), doi:10.1016/j.jclepro.2016.09.157.

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ACCEPTED MANUSCRIPT

Production and transportation outsourcing decisions in the supply

chain under single and multiple carbon policies

Jian Li, Qin Su*, Li Ma

School of Management, State Key Laboratory for Manufacturing Systems Engineering, The Key

Lab of the Ministry of Education forProcess Control Efficiency Engineering, Xi’an Jiaotong

University, Xi’an, China

Cap-and-trade and carbon tax are the two main policies to reduce carbon emissions.

Different from the previous literature and practice, this paper examines the production

and transportation outsourcing problems of a two-echelon supply chain under the

cap-and-trade policy and joint cap-and-trade and carbon tax policy. Enterprise

operations are divided into the order stage and transportation outsourcing decision

stage. In the order stage, the retailer sets his order schedule for the manufacturing

plant for fulfillment, and in the transportation outsourcing decision stage, the

manufacturer decides the optimal freight volume based on energy consumption.

Furthermore, we construct a basic model without a carbon policy and two extended

models with carbon policies and the optimal solutions of the models are solved.

Numerical examples are provided, and the three models are compared. The results

indicate that the extended model with carbon policies is more beneficial for emissions

reduction, and the effect of emissions reduction gradually becomes smooth as the

carbon price increases; the joint cap-and-trade and carbon tax policy is more effective

for emissions reduction, especially when the carbon price is lower. These findings will

be helpful to policy makers and managers.

Keywords: inventory management; production control; transportation outsourcing;

carbon emissions; carbon policy

1. Introduction

It is a general consensus that the main reason for global warming is greenhouse gases

(GHG) such as carbon dioxide (CO2).Many countries and regions have enacted *Corresponding author. Tel.:+86 029 82668383 E-mail address: qinsu@mail.xjtu.edu.cn

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