Curated News
By: NewsRamp Editorial Staff
December 28, 2025
Dynamic Production Model Cuts Emissions While Boosting Supply Chain Profits
TLDR
- Companies can gain competitive advantage by using dynamic production models to reduce carbon taxes and improve profitability while meeting emission regulations.
- Researchers developed an optimal control model where production rate varies with time, using metaheuristic algorithms like EOA to optimize pricing, inventory, and emission costs.
- This approach helps create more sustainable supply chains by reducing emissions while maintaining economic viability, making tomorrow's industrial operations greener and more coordinated.
- The Equilibrium Optimizer Algorithm outperformed five other metaheuristic methods in solving complex supply chain problems with dynamic production and carbon constraints.
Impact - Why it Matters
This research matters because it directly addresses one of the most pressing challenges in global manufacturing: how to maintain profitability while meeting increasingly stringent environmental regulations. As governments worldwide implement carbon taxes and emission caps, companies face growing pressure to decarbonize their operations without sacrificing competitive advantage. Traditional supply chain models with fixed production rates fail to account for real-world volatility in demand and regulatory environments, often forcing companies to choose between economic viability and sustainability. This study's dynamic approach provides a practical solution that allows manufacturers to adapt production in real-time, reducing emissions when possible while maintaining responsiveness to market conditions. For industries like steel, cement, and chemicals—where carbon output scales directly with production—this model offers a way to minimize tax penalties, improve retailer coordination, and future-proof operations against tightening environmental policies. Ultimately, it represents a significant step toward reconciling economic growth with environmental stewardship in global supply chains.
Summary
Researchers from The University of Burdwan, Jahangirnagar University, and Tecnologico de Monterrey have developed a groundbreaking supply chain model that addresses the critical challenges of modern manufacturing: balancing profitability with environmental responsibility. Published in the journal Frontiers of Engineering Management, this study introduces an optimal control-based approach where production rate is treated as a dynamic, time-dependent variable rather than a fixed value. The model uniquely integrates price- and time-sensitive demand for both retailers and consumers while directly linking carbon emission levels to production intensity, offering a more realistic framework than previous static models.
To solve this complex non-linear problem, the research team tested six metaheuristic algorithms, including the Artificial Electric Field Algorithm, Firefly Algorithm, Grey Wolf Optimizer, Sparrow Search Algorithm, Whale Optimizer Algorithm, and the Equilibrium Optimizer Algorithm (EOA). Their comparative analysis revealed that EOA outperformed all other methods in solution accuracy, convergence speed, and stability. The findings demonstrate that dynamic production control can significantly reduce emissions while improving coordination between manufacturers and retailers, creating a practical pathway toward sustainable and economically viable supply chain operations in industries like steel, cement, chemicals, and consumer goods.
This research provides a crucial decision-support framework for companies operating under increasing carbon tax regulations and volatile market conditions. By allowing production systems to react dynamically to demand fluctuations and emission constraints, manufacturers can identify profitable operational levels without compromising environmental goals. The study's sensitivity analysis further reveals how variations in tax rates, production costs, and price elasticity influence both profit and emission outcomes, offering actionable insights for industries seeking to develop greener strategies, reduce regulatory penalties, and enhance collaboration across their supply chains.
Source Statement
This curated news summary relied on content disributed by 24-7 Press Release. Read the original source here, Dynamic Production Model Cuts Emissions While Boosting Supply Chain Profits
