Green activity-based costing production decision model for recycled paper

Chu Lun Hsieh, Wen Hsien Tsai, Yao Chung Chang

Research output: Contribution to journalArticlepeer-review

7 Scopus citations


Using mathematical programming with activity-based costing (ABC) and based on the theory of constraints (TOC), this study proposed a green production model for the traditional paper industry to achieve the purpose of energy saving and carbon emission reduction. The mathematical programming model presented in this paper considers (1) revenue of main products and byproducts, (2) unit-level, batch-level, and product-level activity costs in ABC, (3) labor cost with overtime available, (4) machine cost with capacity expansion, (5) saved electric power and steam costs by using the coal as the main fuel in conjunction with Refuse Derived Fuel (RDF). This model also considers the constraint of the quantity of carbon equivalent of various gases that are allowed to be emitted from the mill paper-making process to conform to the environmental protection policy. A numerical example is used to demonstrate how to apply the model presented in this paper. In addition, sensitivity analysis on the key parameters of the model are used to provide further insights for this research.

Original languageEnglish
Article number2413
Issue number10
StatePublished - 1 May 2020


  • Activity-Based Costing (ABC)
  • Carbon emission reduction
  • Energy saving
  • Green production
  • Green supply chain
  • Theory of Constraints (TOC)


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