Integration of manufacturing and pricing for downward substitution products decision-making

With a cap-and-trade policy and green technology as inputs, we built a manufacturing ordering and pricing joint decision-making model for two downward substitution products to identify the conditions for optimal order quantities and prices of products under the additive demand case. Considering the case of a single period model, the conditions required for optimal manufacturing quantities and pricing were discussed, and the construction of the model was analyzed; furthermore, a study of the tactical choices between green technology inputs and manufacturing decisions was conducted, and the conditions required for green technology manufacturing input were obtained.