tailieunhanh - Impact of a reactive capacity production on the firm’s operational management under carbon cap and trade system

The objective of this study is to examine the impact of the firm’s flexible operational strategy, called a reactive capacity production strategy, on the firm’s managerial efficiency under the carbon cap and trade system. | Impact of a reactive capacity production on the firm s operational management under carbon cap and trade system Uncertain Supply Chain Management 7 2019 471 482 Contents lists available at GrowingScience Uncertain Supply Chain Management homepage uscm Impact of a reactive capacity production on the firm s operational management under carbon cap and trade system Jinpyo Leea a College of Business Administration Hongik University Seoul Republic of Korea CHRONICLE ABSTRACT Article history In recent years there has been an increase consensus that the firms social responsibility plays Received November 5 2018 an essential role for the success of the firms. To address the need to be socially and Accepted December 2 2018 environmentally responsible this paper considers a firm which makes a production decision Available online under the carbon emission cap and trade system. The objective of this study is to examine the December 2 2018 Keywords impact of the firm s flexible operational strategy called a reactive capacity production strategy Carbon cap and trading system on the firm s managerial efficiency under the carbon cap and trade system. The reactive capacity Reactive capacity production production strategy has been widely used for agile response on the market. The study shows that Green management the firm with reactive capacity production strategy under the carbon cap and trade market may choose the first production quantity less than the firm without reactive capacity and provide more profit than the firm without reactive capacity. Also the study analytically provides the optimal solution for the expected amount of carbon emission traded on the carbon trading market and the expected total amount of carbon emission by the firm with reactive capacity under the carbon cap and trade market. 2019 by the authors licensee Growing Science Canada 1. Introduction Nowadays there has been increased public consensus that the firm s social responsibility

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