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A Framework of Production Planning and Control with Carbon Tax under Industry 4.0

Author

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  • Wen-Hsien Tsai

    (Department of Business Administration, National Central University, 300, Jhongda Rd., Jhongli, Taoyuan 32001, Taiwan)

  • Yin-Hwa Lu

    (Department of Business Administration, National Central University, 300, Jhongda Rd., Jhongli, Taoyuan 32001, Taiwan)

Abstract

In recent years, the international community has placed great emphasis on environmental protection issues. The United Nations has also successively enacted relevant laws and regulations to restrain international greenhouse gas emissions and some countries implemented carbon tax levies to reduce air pollution. The tire industry is a manufacturing industry with high pollution and high carbon emissions; therefore, the purpose of this paper is to propose a framework of production planning and control with carbon tax under Industry 4.0 and use the tire industry as the illustrative example. In this framework, the mathematical programming model, with Activity-Based Costing (ABC) and Theory of Constraints (TOC) for production planning, is used to achieve the optimal solution under various production and sale constraints in order to find the optimal product-mix maximizing the profit. On the other hand, Industry 4.0 utilizes new technologies such as 3D printing, robot and automated guided vehicle (AGV) and links all the components in the manufacturing systems by using various sensor systems, Cyber-Physical Systems (CPS) and Internet of Things (IoT) to collect and monitor the activity data of all the components in real-time, to give intelligent responses to various problems that may arise in the factory by the real-time analysis results of cloud computing and big data and to attain the various benefits of Industry 4.0 implementation. The parameters of the mathematical programming model will be updated periodically from the new big data set. In this paper, an illustrative example is used is used to demonstrate the application of the model. From the optimal solution and sensitivity analyses on increasing the raw material’s prices and carbon taxes will affect the profits. This framework can provide a general approach to help companies execute production management in the way of more efficiency, less cost, lower carbon emission and higher quality across the value chain for the tire industry and other industries.

Suggested Citation

  • Wen-Hsien Tsai & Yin-Hwa Lu, 2018. "A Framework of Production Planning and Control with Carbon Tax under Industry 4.0," Sustainability, MDPI, vol. 10(9), pages 1-24, September.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:9:p:3221-:d:168655
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    References listed on IDEAS

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    Cited by:

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    2. Siewhui Chong & Guan-Ting Pan & Jitkai Chin & Pau Loke Show & Thomas Chung Kuang Yang & Chao-Ming Huang, 2018. "Integration of 3D Printing and Industry 4.0 into Engineering Teaching," Sustainability, MDPI, vol. 10(11), pages 1-13, October.
    3. Anupama Prashar, 2023. "Title: production planning and control in industry 4.0 environment: a morphological analysis of literature and research agenda," Journal of Intelligent Manufacturing, Springer, vol. 34(6), pages 2513-2528, August.
    4. Luma AL-QUDAH, 2021. "The Perception Of Implementing Industry 4.0 On Supply Chain: A Review On Sustainability Pillars," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 57-69, July.
    5. Piccarozzi, Michela & Silvestri, Cecilia & Aquilani, Barbara & Silvestri, Luca, 2022. "Is this a new story of the ‘Two Giants’? A systematic literature review of the relationship between industry 4.0, sustainability and its pillars," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    6. Jaroslav Vrchota & Martin Pech & Ladislav Rolínek & Jiří Bednář, 2020. "Sustainability Outcomes of Green Processes in Relation to Industry 4.0 in Manufacturing: Systematic Review," Sustainability, MDPI, vol. 12(15), pages 1-47, July.
    7. Héctor Cañas & Josefa Mula & Francisco Campuzano-Bolarín, 2020. "A General Outline of a Sustainable Supply Chain 4.0," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    8. Jaroslav Vrchota & Petr Řehoř & Monika Maříková & Martin Pech, 2020. "Critical Success Factors of the Project Management in Relation to Industry 4.0 for Sustainability of Projects," Sustainability, MDPI, vol. 13(1), pages 1-19, December.
    9. Vasja Roblek & Oshane Thorpe & Mirjana Pejic Bach & Andrej Jerman & Maja Meško, 2020. "The Fourth Industrial Revolution and the Sustainability Practices: A Comparative Automated Content Analysis Approach of Theory and Practice," Sustainability, MDPI, vol. 12(20), pages 1-27, October.
    10. Andreas Felsberger & Gerald Reiner, 2020. "Sustainable Industry 4.0 in Production and Operations Management: A Systematic Literature Review," Sustainability, MDPI, vol. 12(19), pages 1-39, September.
    11. Lulu Xin & Shuai Lang & Arunodaya Raj Mishra, 2022. "RETRACTED ARTICLE: Evaluate the challenges of sustainable supply chain 4.0 implementation under the circular economy concept using new decision making approach," Operations Management Research, Springer, vol. 15(3), pages 773-792, December.
    12. Li, Xiaowei & Hua, Guowei & Huang, Anqiang & Sheu, Jiuh-Biing & Cheng, T.C.E. & Huang, Fengquan, 2020. "Storage assignment policy with awareness of energy consumption in the Kiva mobile fulfilment system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    13. Wenzhu Liao & Tong Wang, 2019. "A Novel Collaborative Optimization Model for Job Shop Production–Delivery Considering Time Window and Carbon Emission," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    14. Elahi, Ehsan & Khalid, Zainab, 2022. "Estimating smart energy inputs packages using hybrid optimisation technique to mitigate environmental emissions of commercial fish farms," Applied Energy, Elsevier, vol. 326(C).
    15. Xiao Zhao & Xuhui Xia & Lei Wang & Guodong Yu, 2018. "Risk-Averse Facility Location for Green Closed-Loop Supply Chain Networks Design under Uncertainty," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    16. Mariani, Marcello & Borghi, Matteo, 2019. "Industry 4.0: A bibliometric review of its managerial intellectual structure and potential evolution in the service industries," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    17. Krzysztof Ejsmont & Bartlomiej Gladysz & Aldona Kluczek, 2020. "Impact of Industry 4.0 on Sustainability—Bibliometric Literature Review," Sustainability, MDPI, vol. 12(14), pages 1-29, July.

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