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Green Activity-Based Costing Production Decision Model for Recycled Paper

Author

Listed:
  • Chu-Lun Hsieh

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

  • Wen-Hsien Tsai

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

  • Yao-Chung Chang

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

Abstract

Using mathematical programming with activity-based costing (ABC) and based on the theory of constraints (TOC), this study proposed a green production model for the traditional paper industry to achieve the purpose of energy saving and carbon emission reduction. The mathematical programming model presented in this paper considers (1) revenue of main products and byproducts, (2) unit-level, batch-level, and product-level activity costs in ABC, (3) labor cost with overtime available, (4) machine cost with capacity expansion, (5) saved electric power and steam costs by using the coal as the main fuel in conjunction with Refuse Derived Fuel (RDF). This model also considers the constraint of the quantity of carbon equivalent of various gases that are allowed to be emitted from the mill paper-making process to conform to the environmental protection policy. A numerical example is used to demonstrate how to apply the model presented in this paper. In addition, sensitivity analysis on the key parameters of the model are used to provide further insights for this research.

Suggested Citation

  • Chu-Lun Hsieh & Wen-Hsien Tsai & Yao-Chung Chang, 2020. "Green Activity-Based Costing Production Decision Model for Recycled Paper," Energies, MDPI, vol. 13(10), pages 1-23, May.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:10:p:2413-:d:357076
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    Cited by:

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    3. Wen-Hsien Tsai & Shuo-Chieh Chang & Yuchun Teng, 2024. "Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry," Energies, MDPI, vol. 17(6), pages 1-37, March.

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