Tactical supply chain planning under a carbon tax policy scheme: a case study
journal contributionposted on 2016-04-15, 14:26 authored by Behnam Fahimnia, Joseph Sarkis, Alok ChoudharyAlok Choudhary, Ali Eshragh
Greenhouse gas emissions are receiving greater scrutiny in many countries due to international forces to reduce anthropogenic global climate change. Industry and their supply chains represent a major source of these emissions. This paper presents a tactical supply chain planning model that integrates economic and carbon emission objectives under a carbon tax policy scheme. A modified Cross-Entropy solution method is adopted to solve the proposed nonlinear supply chain planning model. Numerical experiments are completed utilizing data from an actual organization in Australia where a carbon tax is in operation. The analyses of the numerical results provide important organizational and policy insights on (1) the financial and emissions reduction impacts of a carbon tax at the tactical planning level, (2) the use of cost/emission tradeoff analysis for making informed decisions on investments, (3) the way to price carbon for maximum environmental returns per dollar increase in supply chain cost.
- Business and Economics
Published inInternational Journal of Production Economics
Pages206 - 215
CitationFAHIMNIA, B. ... et al., 2015. Tactical supply chain planning under a carbon tax policy scheme: a case study. International Journal of Production Economics, 164, pp.206-215.
- AM (Accepted Manuscript)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
NotesThis paper was accepted for publication in the journal International Journal of Production Economics and the definitive published version is available at http://dx.doi.org/10.1016/j.ijpe.2014.12.015