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Production planning with transshipment in a global supply chain under different carbon trading mechanisms

  • Min Wang
  • Jiao Ouyang
  • Lindu ZhaoEmail author
Original paper
  • 21 Downloads

Abstract

To cope with the supply-demand mismatch in the global market, transnational enterprises usually adopt the strategy of lateral transshipment. This paper studies the production planning, transshipment and carbon trading problem of a large transnational manufacturer in a global supply chain. Two countries are involved in the operation of the transnational manufacturer, where different carbon trading mechanisms are implemented. Operational decisions of the transnational manufacturer are optimized in a mixed integer programming model with the purpose of maximizing its total profit. Then, we analyze the influence of the difference between carbon trading mechanisms on the transnational manufacturer, retailers, the countries involved and the global supply chain. Theoretically, our research enriches the research streams of lateral transshipment and carbon cap-and-trade policy. Moreover, managerial insights are provided for global supply chain members and international emission reduction regulators, which contribute to the smooth operation of global supply chains and enhance emission reduction. Especially, the conditions under which local governments should emphasize on economic development or environmental protection are revealed.

Keywords

Production planning Lateral transshipment Carbon trading mechanism Global supply chain 

Mathematics Subject Classification

90C11 

Notes

Acknowledgements

This work is supported by the National Natural Science Foundation of China (No. 71661147004, No. 71390333).

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

Supplementary material

12351_2019_518_MOESM1_ESM.xlsx (35 kb)
Supplementary material 1 (XLSX 34 kb)

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.School of Economics and ManagementSoutheast UniversityNanjingChina

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