Recently, incorporating carbon emissions into order allocation decisions has attracted considerable attention among scholars and industrialists. Moreover, affected by the random fluctuations of the man, machine, material, method, and environment (4M1E), the production process is usually imperfect with defective products. Reducing product defective rates can effectively improve the quality of the order allocation process. Therefore, considering product defective rate and carbon emission, a multiobjective integer nonlinear programming (INLP) formulation is presented to address this multiproduct, multiperiod, and multi-OEM order allocation problem. Furthermore, exploring the existing literatures, an improved genetic algorithm using priority encoding (IGAUPE) is put forward as a novel optimization technique. Finally, numerical experiments are conducted to validate the correctness of the proposed INLP model as well as the effectiveness of the proposed algorithm. Compared with the genetic algorithm using binary encoding (GAUBE), genetic algorithm using two-layer encoding (GAUTE), and LINGO software, the experiment results show that IGAUPE can improve the efficiency and effectiveness within the predetermined time limit when solving large-scale instances.