Sustainable Green Economy for a Supply Chain with Remanufacturing by Both the Supplier and Manufacturer in a Varying Market

Rimi Karmakar, Sanat K. Mazumder, Md Billal Hossain, Csaba Balint Illes and Arindam Garai ()
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Rimi Karmakar: Department of Mathematics, Indian Institute of Engineering Science and Technology, Shibpur, Howrah 711 103, India
Sanat K. Mazumder: Department of Mathematics, Indian Institute of Engineering Science and Technology, Shibpur, Howrah 711 103, India
Md Billal Hossain: Doctoral School of Economic and Regional Sciences, Hungarian University of Agriculture and Life Sciences, 2100 Godollo, Hungary
Csaba Balint Illes: Hungarian National Bank—Research Center, John Von Neumann University, 6000 Kecskemet, Hungary
Arindam Garai: Department of Mathematics, Sonarpur Mahavidyalaya, Rajpur, Kolkata 700 149, India

Logistics, 2023, vol. 7, issue 3, 1-48

Abstract: Background : In a typical multiechelon supply chain, the supplier makes semifinished items, from which the manufacturer produces finished products to eventually get sold at retailers. However, the majority of existing supply chain models consider the remanufacturing of defective products by solely one organization, despite the fact that both the supplier and manufacturer can produce defective products. This study considers the remanufacturing of defective products with fresh materials and additional expenses by both the supplier and manufacturer. Contrary to well-established articles that hold major partners to be accountable for reducing carbon emissions under a carbon cap-and-trade policy, the proposed model presumes an initial green technological investment by each chain partner. Methods : This study represents a varying market with fuzzy cost components that are then defuzzified with λ -integral method. This study determines the critical values of three discrete and four other continuous decision variables that globally maximize the profitability of the proposed model. Results: Slower production with a longer cycle boosts profitability in a developing market. To increase profit, a case study on the oil and natural gas business suggested to reduce the production of defective items and cutting emission through green investments. Conclusions : Managers can sustainably boost profit via careful production, modern machinery, and slightly longer cycles.

Keywords: sustainable supply chain; remanufacturing; green economy; carbon cap-and-trade; cooperative advertising; degree of optimism (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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