Abstract:In 2020, carbon trading system will be fully amplified and introduced a carbon tax in China, which is bound to an important impact for manufacturing enterprise operation. In order to analyze the enterprise operation adjustment for production and inventory under carbon tax mechanism, and the impact implemented actively the carbon emission reduction technology investment. In this paper, manufacturing enterprise production-inventory changes with three scenarios, which includes no carbon emissions constraints, a carbon tax mechanism and emissions reducing technology investment, was studied on the basis of the classic Arrow-Karlin dynamic model. To investigate mathematical characteristics of the model. Pontryagin Maximum Principle and forward Arrow-Karlin algorithm were used to solve the model. It was concluded that enterprise production and inventory level was optimal when implementing emission reducing technology investment under carbon tax mechanism. With increases investment in emissions reduction technology, the number of carbon emissions decreases, but exists the law of diminishing marginal investment to reduce emissions.