A green production strategies for carbon-sensitive products with a carbon cap policy

This paper discusses the production strategies used by manufacturers of carbon-sensitive products that have a carbon cap Policy under both deterministic demand and stochastic demand. In this study, we examine green manufacturing strategies for carbon-sensitive products under carbon cap policy regulations. We primarily consider the two scenarios of deterministic demand and stochastic demand. When the carbon cap Policy regulation has no restriction to the production of the manufacturers, the higher the carbon sensitivity coefficient of the product, the lower the profit of the manufacturing enterprise. When carbon cap Policy regulation of manufacturing enterprise production is a constraint, for the deterministic demand, with the higher carbon sensitive coefficient, manufacturing enterprise profit is higher; for stochastic demand, With the increasingly high carbon sensitive coefficient, manufacturing enterprise profit is low. Through the above research, the conclusion of this paper has reference value and guiding role to carbon-sensitive products' green production strategies with a carbon cap policy. (C) 2016 PEI, University of Maribor. All rights reserved.