Research on remanufacturing closed loop supply chain based on incentive-compatibility theory under uncertainty

Jianquan Guo (), Guanlan Wang (), Zhen Wang (), Chengji Liang () and Mitsuo Gen ()
Additional contact information
Jianquan Guo: University of Shanghai for Science and Technology
Guanlan Wang: University of Shanghai for Science and Technology
Zhen Wang: University of Shanghai for Science and Technology
Chengji Liang: Shanghai Maritime University
Mitsuo Gen: Tokyo University of Science, Fuzzy Logic Systems Institute

Annals of Operations Research, 2025, vol. 349, issue 2, No 27, 1203-1224

Abstract: Abstract Based on incentive-compatibility theory, a total cost model of a remanufacturing closed-loop supply chain system considering carbon taxes and subsidies under uncertain market demand and recycled products quality is constructed. In order to clarify the uncertainty factors about this model, fuzzy opportunity constraint programming method is proposed. As a discrete optimization problem, meta-heuristics methods, Genetic Algorithm (GA) and Particle Swarm Optimization (PSO) are used to find and compare a calculating example’s approximate optimal solution about this model. The calculating results indicate that the system cost changes under different combinations of market demand and recycled products quality. The carbon tax policy (compatibility) set by government may reduce the carbon emissions of enterprises, but the increase of the enterprises' cost will significantly negatively affect their willingness to reduce carbon emissions. Therefore, incentives such as subsidies are needed. There exists an optimal incentive-compatibility combination, under which closed-loop supply chain system can achieve optimal cost reduction and carbon emissions reduction effect. This study helps enterprises make reasonable production plan to reach their optimal objective in uncertain environment, and also helps government make full use of incentive-compatibility theory to guide enterprises to reduce carbon emission and improve recovery rate and remanufacturing rate.

Keywords: Uncertain market demand; Uncertain recycled products quality; Fuzzy opportunity constrained programming; Incentive-compatibility theory; Particle Swarm Optimization (PSO); Genetic Algorithm (GA) (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10479-022-04591-w 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:349:y:2025:i:2:d:10.1007_s10479-022-04591-w

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

DOI: 10.1007/s10479-022-04591-w

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 ().