Corporate optimal production planning with varying environmental costs: A grey compromise programming approach

Chia Chin Wu, Ni Bin Chang

Research output: Contribution to journalArticle

53 Citations (Scopus)

Abstract

Corporate environmental and resources management has become more strategically oriented when many pollution charges, environmental taxes, and resources conservation fees have been gradually imposing to the industry. The need for explicit consideration and incorporation of varying environmental costs within production-planning program is becoming critical to corporate management. This paper attempts to assess an optimal production-planning program in response to varying environmental costs in an uncertain environment. The optimal production strategy concerning numerous screening of possible production alternatives of dyeing cloth in a textile-dyeing firm in terms of market demand, resources availability, and impact of environmental costs is treated as an integral part of the multi-criteria decision-making framework based on the grey compromise programming approach. It covers not only the regular part of production costs and the direct income from product sales but also the emission/effluent charges and water resource fees reflecting part of the goals for internalization of external cost in a sustainable society. In particular, all the crucial variables in the model are addressed by interval expressions, the same as they are frequently applied in the grey systems theory, in support of a vital uncertainty assessment, which is much better suited for this particular study than other approaches. Research results demonstrate the applicability and significance of such an approach based on a case study. Industry looking for the competitive advantage of environmental management must be aware of the potential benefits from such an integrated production-planning program once the trend of increasing pollution charges, environmental taxes, and resources conservation fees remains.

Original languageEnglish (US)
Pages (from-to)68-95
Number of pages28
JournalEuropean Journal of Operational Research
Volume155
Issue number1
DOIs
StatePublished - May 16 2004

Fingerprint

Compromise Programming
Production Planning
Planning
Costs
Environmental Management
Charge
Tax
Pollution
Resources
Conservation
Taxation
Dyeing
Industry
Grey System Theory
Water Resources
Multicriteria Decision-making
Resource Management
Environmental management
System theory
Screening

Keywords

  • Environmental management
  • Grey systems theory
  • Multiple objective programming
  • Optimal production planning
  • Uncertainty analysis

ASJC Scopus subject areas

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

Cite this

Corporate optimal production planning with varying environmental costs : A grey compromise programming approach. / Wu, Chia Chin; Chang, Ni Bin.

In: European Journal of Operational Research, Vol. 155, No. 1, 16.05.2004, p. 68-95.

Research output: Contribution to journalArticle

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