A stochastic reverse logistics production routing model with environmental considerations

Yiqiang Zhang, Hussam Alshraideh and Ali Diabat ()
Additional contact information
Yiqiang Zhang: Shanghai Lixin University of Accounting and Finance
Hussam Alshraideh: New York University Abu Dhabi
Ali Diabat: New York University Abu Dhabi

Annals of Operations Research, 2018, vol. 271, issue 2, No 29, 1023-1044

Abstract: Abstract Growing global concerns of environmental problems have led to the emergence of policies and regulations to control carbon emissions in the industrial sector. These regulations must be taken into consideration to obtain optimal operational decisions on production, inventory and routing in supply chain network models. In this study, we consider the reverse logistics supply chain model with a remanufacturing option to reduce carbon emissions. We aim at providing optimal production, inventory and delivery quantities along with delivery and pickup routes under a carbon cap-and-trade emissions policy. We provide a mathematical formulation of the problem that considers heterogeneous transportation fleets and allows for lost sales under the cap-and-trade carbon emissions policy. The proposed mathematical model is provided in a deterministic and a two-stage stochastic versions to account for demand uncertainty. Proposed formulations are demonstrated through a simulated reverse logistics supply chain with added sensitivity analysis to test for the effect of modeling parameters on the optimal problem solution. Simulation results indicate that carbon policies have significant effect on the supply chain performance with carbon price as the most significant parameter.

Keywords: Carbon policy; Carbon emissions; Reverse logistics; Stochastic demand; Production routing (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1007/s10479-018-3045-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:271:y:2018:i:2:d:10.1007_s10479-018-3045-2

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-018-3045-2

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().