Apparel Supply Chain Optimization with Subsides under carbon emission taxation

The textile and apparel product is old textile apparel. The paper first analyzed the basic decision model of supply chain considering only carbon tax circumstances. Then, on this basis, the paper explored the supply chain optimal production and ordering decision considering government recycling and technology upgrading subsidy policy respectively, through designing the utilization rate of recycled products and the reduction rate of carbon emissions after technical transformation. Finally combined two kinds of subsidies policies, the optimal decision of supply chain was discussed. The results show that the only carbon tax policy may play a role in reducing carbon emissions, but for textile and apparel industry which the profit margin is small, it may decrease the benefit of company. As a result, the combination of government recycling and technology upgrading subsidy policy will realize the both objective of carbon emission reduction and economic benefits for apparel supply chain.