Research On Optimal Production Decision Of Manufacturing Enterprises Under Environmental Regulation

Since the reform and opening up,China has made great achievements in economic and social development,and people’s living standards have been improving,and the demand from ecological environment has been gradually increasing,therefore,development must pay attention to the protection of ecological environment and must strengthen the construction of ecological civilization.And the main purpose of environmental regulation is to strengthen the coordination and cooperation between environmental regulation policies and fiscal,financial and innovation policies to jointly promote the construction of ecological civilization in the new era.Under environmental regulation,the relevant environmental regulatory authorities will limit the amount of emissions of manufacturing enterprises,and under the same technical conditions,the limitation of the amount of emissions leads to the limitation of the production capacity of manufacturing enterprises.As a result,the profits of manufacturing enterprises are greatly affected,and even the overall development of the industry is affected,so the capacity management and production operation process of relevant manufacturing enterprises are encountered with great challenges.For the production of manufacturing enterprises,the production orders faced by them are different.Although high profit orders can obtain higher profits,the appearance of high profit orders is random,so manufacturing enterprises choose high profit orders need to bear the corresponding waiting costs and risks;while the advantage of low value-added,low profit orders is the number of orders,enterprises can obtain such orders at any time.Therefore,in the case of capacity constraint,how to make the optimal order selection is a key issue that affects the profitability of enterprises.In this paper,from the perspective of manufacturing firms under environmental regulation,we analyze and study the problems of order selection in the market and game decision in the supply chain of manufacturing firms under environmental regulation after capacity constraint.Since the emergence of orders is uncertain,and the probability distribution of their emergence may be known or unknown,the generation of such uncertain demand needs to be studied using appropriate optimization methods.In this paper,based on a detailed review and summary of domestic and foreign research,we combine optimization theory to construct an optimal order selection model for manufacturing enterprises to study how to make optimal order selection decisions in different production cycles and related game decisions in the supply chain when capacity is limited under environmental regulation,which can help manufacturing enterprises develop stably under environmental regulation and further promote the construction of ecological civilization.The main research of this paper includes the following three aspects:First,we study the optimal order selection decisions of manufacturing firms under single-cycle and multi-cycle when the probability distribution of the occurrence of high-margin orders faced by manufacturing firms is known when capacity is limited under environmental regulations,and analyze the impact of different discount rates on the decisions of manufacturing firms.This paper first constructs an order selection model in a single cycle based on optimization theory to analyze the decision behavior of manufacturing firms in a single cycle,and then extends the single cycle to multiple cycles to study the order selection decision based on the long-term average profit of manufacturing firms.Through the research,this paper finds that in the single generation cycle,there will be an optimal waiting time node for high-margin orders,based on which the corresponding order selection strategy can be effectively formulated;however,in the multi-production cycle,because the optimal waiting time node for high-margin orders is influenced by the long-term average profit,the optimal order selection strategy of enterprises is formulated based on the maximization of long-term average profit.Second,the probability distribution of high-margin orders is extended from known to unknown situations,and in situations where the probability distribution of high-margin orders is unknown,firms choosing to wait for high-margin orders must bear the cost of waiting and the risk of losing firm profits.Therefore,this paper still takes manufacturing firms as the research object,and builds an order selection decision model based on the unknown distribution probability of high-margin orders in a long cycle to investigate the optimal order selection problem of firms under environmental regulation.It is found that in the case of observable lost opportunities,the optimal waiting time decisions under strategic and short-sighted strategies are the same under each cycle;while in the case of unobservable lost opportunities,the optimal waiting time should be traded off between the profit of the short-sighted strategy and the profit of the strategic decision,and once the asymmetry of information disappears,then the time of appearance of high profit orders under the short-sighted strategy of The information will be more accurate.Finally,this paper analyzes how manufacturing companies can make their own optimal decisions in the supply chain based on the decisions of downstream companies and the decisions of relevant environmental regulators.Therefore,based on the dynamic game relationship among environmental regulatory authorities,retail enterprises and manufacturing enterprises,this paper constructs a three-party evolutionary game model of green production and marketing under environmental regulation,analyzes the strategy stability of each game subject,explores the influence mechanism of each game subject’s decision choice,and applies simulation analysis to explore the evolutionary path of the green production and marketing game system under environmental regulation.The study finds that increasing administrative penalties,information disclosure and support incentives are conducive to the choice of green production and marketing strategies by retail and manufacturing enterprises,and the establishment of a credit regulation mechanism with public participation will help to inhibit the non-green production and operation behaviors of retail and manufacturing enterprises,and will prompt the environmental regulatory authorities to adopt active regulatory strategies,while the strategy choices of retail and manufacturing enterprises There is a "constrained" strategy game between retail and manufacturing enterprises.In this paper,we analyze the optimal production decision of manufacturing enterprises with limited production capacity under environmental regulation,and analyze the game between manufacturing enterprises in the supply chain,downstream retail enterprises and relevant regulatory authorities based on the game perspective,and comprehensively study the impact of environmental regulation on manufacturing enterprises and how manufacturing enterprises can make optimal decisions to obtain optimal profits in the context of environmental regulation.This is of great significance for the long-term stable development of relevant manufacturing enterprises,and is also beneficial to the construction of ecological civilization.