Multi-period closed-loop supply chain network equilibrium with carbon emission constraints

This paper studies a closed-loop supply chain network equilibrium problem in multiperiod planning horizons with consideration of product lifetime and carbon emission constraints. The closed-loop supply chain network consists of suppliers tier, manufacturer tier, retailers tier, and demand markets tier, in which the manufacturers collect used products from the demand markets directly. Product lifetime is introduced to denote the maximum times of manufacturing and remanufacturing, and the relation between adjacent periods is described by inventory transfer. By variational inequalities and complementary theory, the optimal behaviors of all the players are modeled, and, in turn, the governing closed-loop supply chain network equilibrium model is established. The model is solved by modified project contraction algorithm with fixed step. Optimal equilibrium results are computed and analyzed through numerical examples. The impacts of collection rate, remanufacturing conversion rate, product lifetime, and carbon emission cap on equilibrium states are analyzed. Finally, several managerial insights are given to provide decision support for entrepreneurs and government official along with some inspirations for future research.

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A multi-objective model for sustainable closed-loop supply chain of perishable products under two carbon emission regulations

Journal of Modelling in Management ◽

10.1108/jm2-11-2020-0299 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Saman Esmaeilian ◽

Dariush Mohamadi ◽

Majid Esmaelian ◽

Mostafa Ebrahimpour

Keyword(s):

Mathematical Model ◽

Supply Chain ◽

Life Cycle ◽

Carbon Emission ◽

Closed Loop ◽

Perishable Products ◽

Supply Chain Network ◽

Closed Loop Supply Chain ◽

Content Type ◽

Trade Model

Purpose This paper aims to minimize the total carbon emissions and costs and also maximize the total social benefits. Design/methodology/approach The present study develops a mathematical model for a closed-loop supply chain network of perishable products so that considers the vital aspects of sustainability across the life cycle of the supply chain network. To evaluate carbon emissions, two different regulating policies are studied. Findings According to the obtained results, increasing the lifetime of the perishable products improves the incorporated objective function (IOF) in both the carbon cap-and-trade model and the model with a strict cap on carbon emission while the solving time increases in both models. Moreover, the computational efficiency of the carbon cap-and-trade model is higher than that of the model with a strict cap, but its value of the IOF is worse. Results indicate that efficient policies for carbon management will support planners to achieve sustainability in a cost-effectively manner. Originality/value This research proposes a mathematical model for the sustainable closed-loop supply chain of perishable products that applies the significant aspects of sustainability across the life cycle of the supply chain network. Regional economic value, regional development, unemployment rate and the number of job opportunities created in the regions are considered as the social dimension.

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