IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i3p756-d202440.html
   My bibliography  Save this article

Green Activity-Based Costing Production Planning and Scenario Analysis for the Aluminum-Alloy Wheel Industry under Industry 4.0

Author

Listed:
  • Wen-Hsien Tsai

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

  • Po-Yuan Chu

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

  • Hsiu-Li Lee

    (Department of Accounting Information, Chihlee University of Technology, Banciao, New Taipei 22050, Taiwan)

Abstract

The industrial revolution has grown to the fourth generation, or so-called Industry 4.0. The literature on Industry 4.0 is quite extensive and involves many different dimensions; however, production costs under Industry 4.0 have seldom been discussed. On the other hand, environmental problems are increasingly serious nowadays. Activity-Based Costing is a mature accounting method that can easily trace direct and indirect product costs, based on activities, as well as trace the carbon tax to products, which may lead to different product combinations, in order to reduce environment problems. Thus, the purpose of this paper is to propose a green activity-based costing production planning model under Industry 4.0. In order to make the paper more realistic, we suggest three models with five possible scenarios: normal and material cost fluctuation, material cost discount, and carbon tax with the related cost function. The Aluminum-Alloy Wheel industry was chosen as the illustrative industry to present the results. The model provides managers with a way to deal with the cost problem under Industry 4.0 and to be able to handle the environmental issues in making production decisions. This paper also provides suggestions for governments that have not considered carbon taxation.

Suggested Citation

  • Wen-Hsien Tsai & Po-Yuan Chu & Hsiu-Li Lee, 2019. "Green Activity-Based Costing Production Planning and Scenario Analysis for the Aluminum-Alloy Wheel Industry under Industry 4.0," Sustainability, MDPI, vol. 11(3), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:756-:d:202440
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/3/756/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/3/756/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tsai, Wen-Hsien & Yang, Chih-Hao & Chang, Jui-Chu & Lee, Hsiu-Li, 2014. "An Activity-Based Costing decision model for life cycle assessment in green building projects," European Journal of Operational Research, Elsevier, vol. 238(2), pages 607-619.
    2. Ibrahim Kamal Abd Rahman & Normah Omar & Zubaidah Zainal Abidin, 2003. "The Applications Of Management Accounting Techniques In Malaysian Companies: An Industrial Survey," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 1(1), pages 1-12, January.
    3. Wen-Hsien Tsai & Chih-Hao Yang & Cheng-Tsu Huang & Yen-Ying Wu, 2017. "The impact of the carbon tax policy on green building strategy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(8), pages 1412-1438, August.
    4. Tsai, Wen-Hsien & Lin, Sin-Jin & Liu, Jau-Yang & Lin, Wan-Rung & Lee, Kuen-Chang, 2011. "Incorporating life cycle assessments into building project decision-making: An energy consumption and CO2 emission perspective," Energy, Elsevier, vol. 36(5), pages 3022-3029.
    5. Malte Meinshausen & Nicolai Meinshausen & William Hare & Sarah C. B. Raper & Katja Frieler & Reto Knutti & David J. Frame & Myles R. Allen, 2009. "Greenhouse-gas emission targets for limiting global warming to 2 °C," Nature, Nature, vol. 458(7242), pages 1158-1162, April.
    6. Tsai, Wen-Hsien & Lee, Kuen-Chang & Liu, Jau-Yang & Lin, Hsiu-Ling & Chou, Yu-Wei & Lin, Sin-Jin, 2012. "A mixed activity-based costing decision model for green airline fleet planning under the constraints of the European Union Emissions Trading Scheme," Energy, Elsevier, vol. 39(1), pages 218-226.
    7. Wen-Hsien Tsai & Thomas W. Lin & Wen-Chin Chou, 2010. "Integrating activity-based costing and environmental cost accounting systems: a case study," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 4(2), pages 186-208.
    8. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Frank Werner & Marina Ivanova, 2016. "A dynamic model and an algorithm for short-term supply chain scheduling in the smart factory industry 4.0," International Journal of Production Research, Taylor & Francis Journals, vol. 54(2), pages 386-402, January.
    9. Tufan Gürkan Yılmaz & Mustafa Tüfekçi & Fatih Karpat, 2017. "A Study of Lightweight Door Hinges of Commercial Vehicles Using Aluminum Instead of Steel for Sustainable Transportation," Sustainability, MDPI, vol. 9(10), pages 1-9, September.
    10. Wen-Hsien Tsai & Tsen-Shu Tsaur & Yu-Wei Chou & Jau-Yang Liu & Jui-Ling Hsu & Chu-Lun Hsieh, 2015. "Integrating the activity-based costing system and life-cycle assessment into green decision-making," International Journal of Production Research, Taylor & Francis Journals, vol. 53(2), pages 451-465, January.
    11. Wen-Hsien Tsai & Jui-Chu Chang & Chu-Lun Hsieh & Tsen-Shu Tsaur & Chung-Wei Wang, 2016. "Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision," Sustainability, MDPI, vol. 8(12), pages 1-22, November.
    12. Begum, Rawshan Ara & Sohag, Kazi & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "CO2 emissions, energy consumption, economic and population growth in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 594-601.
    13. Lee, Kuen-Chang & Tsai, Wen-Hsien & Yang, Chih-Hao & Lin, Ya-Zhi, 2018. "An MCDM approach for selecting green aviation fleet program management strategies under multi-resource limitations," Journal of Air Transport Management, Elsevier, vol. 68(C), pages 76-85.
    14. Gyorgy Kovacs & Sebastian Kot, 2016. "New Logistics And Production Trends As The Effect Of Global Economy Changes," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(2), pages 115-126, December.
    15. Wen-Hsien Tsai & Sin-Jin Lin & Ya-Fen Lee & Yao-Chung Chang & Jui-Ling Hsu, 2013. "Construction method selection for green building projects to improve environmental sustainability by using an MCDM approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(10), pages 1487-1510, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Héctor Cañas & Josefa Mula & Francisco Campuzano-Bolarín, 2020. "A General Outline of a Sustainable Supply Chain 4.0," Sustainability, MDPI, vol. 12(19), pages 1-17, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen-Hsien Tsai & Shi-Yin Jhong, 2018. "Carbon Emissions Cost Analysis with Activity-Based Costing," Sustainability, MDPI, vol. 10(8), pages 1-26, August.
    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. 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.
    4. Wen-Hsien Tsai, 2018. "Green Production Planning and Control for the Textile Industry by Using Mathematical Programming and Industry 4.0 Techniques," Energies, MDPI, vol. 11(8), pages 1-24, August.
    5. Wen-Hsien Tsai, 2018. "Carbon Taxes and Carbon Right Costs Analysis for the Tire Industry," Energies, MDPI, vol. 11(8), pages 1-22, August.
    6. Tsai, Wen-Hsien & Chang, Yao-Chung & Lin, Sin-Jin & Chen, Hui-Chiao & Chu, Po-Yuan, 2014. "A green approach to the weight reduction of aircraft cabins," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 65-77.
    7. Wen-Hsien Tsai & Jui-Chu Chang & Chu-Lun Hsieh & Tsen-Shu Tsaur & Chung-Wei Wang, 2016. "Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision," Sustainability, MDPI, vol. 8(12), pages 1-22, November.
    8. Wen-Hsien Tsai & Chih-Hao Yang & Cheng-Tsu Huang & Yen-Ying Wu, 2017. "The impact of the carbon tax policy on green building strategy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(8), pages 1412-1438, August.
    9. Tsai, Wen-Hsien & Yang, Chih-Hao & Chang, Jui-Chu & Lee, Hsiu-Li, 2014. "An Activity-Based Costing decision model for life cycle assessment in green building projects," European Journal of Operational Research, Elsevier, vol. 238(2), pages 607-619.
    10. Wen-Hsien Tsai & Shang-Yu Lai & Chu-Lun Hsieh, 2023. "Exploring the impact of different carbon emission cost models on corporate profitability," Annals of Operations Research, Springer, vol. 322(1), pages 41-74, March.
    11. Xiguang Cao & Min Deng & Fei Song & Shihu Zhong & Junhao Zhu, 2019. "Direct and moderating effects of environmental regulation intensity on enterprise technological innovation: The case of China," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-20, October.
    12. Ortas, Eduardo & Moneva, José M., 2013. "The Clean Techs equity indexes at stake: Risk and return dynamics analysis," Energy, Elsevier, vol. 57(C), pages 259-269.
    13. Michela Piccarozzi & Barbara Aquilani & Corrado Gatti, 2018. "Industry 4.0 in Management Studies: A Systematic Literature Review," Sustainability, MDPI, vol. 10(10), pages 1-24, October.
    14. 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.
    15. Jang Hee Lee & Olga A. Shvetsova, 2019. "The Impact of VR Application on Student’s Competency Development: A Comparative Study of Regular and VR Engineering Classes with Similar Competency Scopes," Sustainability, MDPI, vol. 11(8), pages 1-26, April.
    16. Wen-Hsien Tsai, 2018. "A Green Quality Management Decision Model with Carbon Tax and Capacity Expansion under Activity-Based Costing (ABC)—A Case Study in the Tire Manufacturing Industry," Energies, MDPI, vol. 11(7), pages 1-30, July.
    17. Fankhauser, Samuel & Hepburn, Cameron, 2010. "Designing carbon markets. Part I: Carbon markets in time," Energy Policy, Elsevier, vol. 38(8), pages 4363-4370, August.
    18. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    19. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    20. Abdeshahian, Peyman & Lim, Jeng Shiun & Ho, Wai Shin & Hashim, Haslenda & Lee, Chew Tin, 2016. "Potential of biogas production from farm animal waste in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 714-723.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:756-:d:202440. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.