Green production planning and control model with ABC under industry 4.0 for the paper industry

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.