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Green Production Planning and Control Model with ABC under Industry 4.0 for the Paper Industry

Author

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  • Wen-Hsien Tsai

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

  • Shang-Yu Lai

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

Abstract

In the last 20 years, with the liberalization of the economy, and the trend of industrial globalization, people have gradually paid more attention to environmental protection. With the tremendous advances in information technology, enterprises facing such a severe impact on the business operations, business administrative models must be innovative and adaptable in order to survive and flourish. The paper industry is not only a highly polluting industry, but in the case of long-term overcapacity, the price of paper products is often suppressed, which lowers profitability. The purpose of this study, which is based on the production data of a paper company, is to pose a mathematical programming decision model which integrates green manufacturing technologies, activity-based costing (ABC), and the theory of constraint (TOC); this model should assist in preparing the best production plans, and achieve the optimal profitable product mix. In addition, this study also proposes that the most popular related technologies developed by Industry 4.0 be applied to production control in recent years in order to enhance production efficiency and quality. The findings of this study should contribute to the improvement of the competitiveness of the paper industry, and provide insights into the value of an integrated mathematical programming model applied for product-mix decision. At the same time, we have also applied the related technologies developed by Industry 4.0 to machine maintenance and quality control in manufacturing workshops. With its tremendous benefits, we can actively arouse the industry’s understanding of, and attention to, Industry 4.0, thereby increasing the interest in industrial 4.0-related technology investments.

Suggested Citation

  • Wen-Hsien Tsai & Shang-Yu Lai, 2018. "Green Production Planning and Control Model with ABC under Industry 4.0 for the Paper Industry," Sustainability, MDPI, vol. 10(8), pages 1-29, August.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2932-:d:164328
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    References listed on IDEAS

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    2. Wen-Hsien Tsai & Shu-Hui Lan & Cheng-Tsu Huang, 2019. "Activity-Based Standard Costing Product-Mix Decision in the Future Digital Era: Green Recycling Steel-Scrap Material for Steel Industry," Sustainability, MDPI, vol. 11(3), pages 1-30, February.
    3. Aitor Goti & Alberto De la Calle & María José Gil & Ander Errasti & Pedro R. D. Bom & Pablo García-Bringas, 2018. "Development and Application of an Assessment Complement for Production System Audits Based on Data Quality, IT Infrastructure, and Sustainability," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    4. L. Thiruvarasu Letchumanan & Hamed Gholami & Noordin Mohd Yusof & Nor Hasrul Akhmal Bin Ngadiman & Anas A. Salameh & Dalia Štreimikienė & Fausto Cavallaro, 2022. "Analyzing the Factors Enabling Green Lean Six Sigma Implementation in the Industry 4.0 Era," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    5. 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.
    6. Shaio Yan Huang & An An Chiu & Po Chi Chao & Arniati Arniati, 2019. "Critical Success Factors in Implementing Enterprise Resource Planning Systems for Sustainable Corporations," Sustainability, MDPI, vol. 11(23), pages 1-42, November.
    7. Paula Morella & María Pilar Lambán & Jesús Royo & Juan Carlos Sánchez & Jaime Latapia, 2023. "Technologies Associated with Industry 4.0 in Green Supply Chains: A Systematic Literature Review," Sustainability, MDPI, vol. 15(12), pages 1-24, June.
    8. 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).
    9. Anna Adamik & Michał Nowicki & Andrius Puksas, 2022. "Energy Oriented Concepts and Other SMART WORLD Trends as Game Changers of Co-Production—Reality or Future?," Energies, MDPI, vol. 15(11), pages 1-38, June.
    10. 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.
    11. 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.

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