Two-period Production Decisions in a Hybrid Manufacturing/Remanufacturing System with Consume Preferences under Carbon Cap and Trade Mechanism

Abstract

We develop a two-period profit-maximization nonlinear programming model to research the impact of carbon cap and trade mechanism as well as the consumer preferences on the enterprises remanufacturing decision and pricing decision. The results illustrate that: with the greater consumer's preference for remanufacturing products, the enterprise will be more positive to conduct remanufacturing, and the profit will be greater as well. The enterprises’ manufacturing/remanufacturing decision and pricing decision is related to carbon trading price but which is not influenced by the initially allocated carbon emission quotas from government.