Reducing Carbon Emissions in a Closed-Loop Production Routing Problem with Simultaneous Pickups and Deliveries under Carbon Cap-and-Trade

Xuanjing Fang, Yanan Du and Yuzhuo Qiu
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Xuanjing Fang: Jiangsu Key Laboratory of Modern Logistics, School of Marketing and Logistics Management, Nanjing University of Finance and Economics, Nanjing 210023, China
Yanan Du: Jiangsu Key Laboratory of Modern Logistics, School of Marketing and Logistics Management, Nanjing University of Finance and Economics, Nanjing 210023, China
Yuzhuo Qiu: Jiangsu Key Laboratory of Modern Logistics, School of Marketing and Logistics Management, Nanjing University of Finance and Economics, Nanjing 210023, China

Sustainability, 2017, vol. 9, issue 12, 1-15

Abstract: The incorporation of reverse logistics into production routing problems can promote and coordinate the implementation of sustainable development for supply chains. This study aims to incorporate reverse logistics into production routing problems and investigate the reduction of carbon emissions under carbon cap-and-trade. Mixed-integer programming models are proposed for the production routing problem with reverse logistics by considering simultaneous pickups and deliveries in vehicle routing subproblems. To solve this problem, we propose a solution method of a branch-and-cut guided search algorithm based on adaptation of known valid inequalities. Computational results highlight the trade-offs among various performance indicators, including emission levels and operational costs of production, inventory holding, fuel consumption, and drivers.

Keywords: routing; production planning and control; branch and bound; environmental studies; carbon emission; carbon cap-and-trade (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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