IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v213y2019icp201-216.html
   My bibliography  Save this article

A stochastic reverse logistics production routing model with emissions control policy selection

Author

Listed:
  • Shuang, Yan
  • Diabat, Ali
  • Liao, Yi

Abstract

Carbon emission control policies have emerged in response to the growing global concerns of environmental problems. These regulations should be considered when operational decisions on production, inventory, and routing are being made as emission costs are incurred. In this study, we introduce a reverse logistics supply chain model with remanufacturing and simultaneous pickup and delivery. The problem considers different carbon emission control policies with heterogeneous transportation fleets and allows for lost sales. The aim is to select the optimal carbon control policy with optimal production, inventory, and delivery quantities. The proposed model is formulated as both a deterministic and a two-stage stochastic mixed-integer programming problem. The proposed formulations are demonstrated through two case studies, a simulated reverse logistics supply chain and an actual home appliances production supply chain with remanufacturing options. Sensitivity analyses are conducted to test for the effect of different parameters on the optimal solution. Results indicate that the carbon policy selected has significant effect on the supply chain performance with carbon price being the most significant parameter.

Suggested Citation

  • Shuang, Yan & Diabat, Ali & Liao, Yi, 2019. "A stochastic reverse logistics production routing model with emissions control policy selection," International Journal of Production Economics, Elsevier, vol. 213(C), pages 201-216.
    • Handle: RePEc:eee:proeco:v:213:y:2019:i:c:p:201-216
    DOI: 10.1016/j.ijpe.2019.03.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527319300921
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2019.03.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roland Geyer & Luk N. Van Wassenhove & Atalay Atasu, 2007. "The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles," Management Science, INFORMS, vol. 53(1), pages 88-100, January.
    2. Ali Diabat & Tarek Abdallah & Tung Le, 2016. "A hybrid tabu search based heuristic for the periodic distribution inventory problem with perishable goods," Annals of Operations Research, Springer, vol. 242(2), pages 373-398, July.
    3. Song, Shuang & Govindan, Kannan & Xu, Lei & Du, Peng & Qiao, Xiaojiao, 2017. "Capacity and production planning with carbon emission constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 132-150.
    4. Palak, Gökçe & Ekşioğlu, Sandra Duni & Geunes, Joseph, 2014. "Analyzing the impacts of carbon regulatory mechanisms on supplier and mode selection decisions: An application to a biofuel supply chain," International Journal of Production Economics, Elsevier, vol. 154(C), pages 198-216.
    5. Atalay Atasu & Miklos Sarvary & Luk N. Van Wassenhove, 2008. "Remanufacturing as a Marketing Strategy," Management Science, INFORMS, vol. 54(10), pages 1731-1746, October.
    6. Bektas, Tolga & Laporte, Gilbert, 2011. "The Pollution-Routing Problem," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1232-1250, September.
    7. Iassinovskaia, Galina & Limbourg, Sabine & Riane, Fouad, 2017. "The inventory-routing problem of returnable transport items with time windows and simultaneous pickup and delivery in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 570-582.
    8. David F. Drake & Paul R. Kleindorfer & Luk N. Van Wassenhove, 2016. "Technology Choice and Capacity Portfolios under Emissions Regulation," Production and Operations Management, Production and Operations Management Society, vol. 25(6), pages 1006-1025, June.
    9. Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2017. "A branch-and-price algorithm for production routing problems with carbon cap-and-trade," Omega, Elsevier, vol. 68(C), pages 49-61.
    10. Roel G. van Anholt & Leandro C. Coelho & Gilbert Laporte & Iris F. A. Vis, 2016. "An Inventory-Routing Problem with Pickups and Deliveries Arising in the Replenishment of Automated Teller Machines," Transportation Science, INFORMS, vol. 50(3), pages 1077-1091, August.
    11. Franceschetti, Anna & Honhon, Dorothée & Van Woensel, Tom & Bektaş, Tolga & Laporte, Gilbert, 2013. "The time-dependent pollution-routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 265-293.
    12. Yiqiang Zhang & Hussam Alshraideh & Ali Diabat, 2018. "A stochastic reverse logistics production routing model with environmental considerations," Annals of Operations Research, Springer, vol. 271(2), pages 1023-1044, December.
    13. Hammami, Ramzi & Nouira, Imen & Frein, Yannick, 2015. "Carbon emissions in a multi-echelon production-inventory model with lead time constraints," International Journal of Production Economics, Elsevier, vol. 164(C), pages 292-307.
    14. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    15. Glock, C. H. & Jaber, M. Y. & El Saadany, A., 2013. "Supply Chain Coordination with Emission Reduction Incentives," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57672, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    16. Gregory A. DeCroix, 2006. "Optimal Policy for a Multiechelon Inventory System with Remanufacturing," Operations Research, INFORMS, vol. 54(3), pages 532-543, June.
    17. Qiu, Yuzhuo & Ni, Ming & Wang, Liang & Li, Qinqin & Fang, Xuanjing & Pardalos, Panos M., 2018. "Production routing problems with reverse logistics and remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 87-100.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fu, Shuaishuai & Chen, Weida & Ding, Junfei & Zhang, Guoqing, 2023. "Is carbon asset pledge financing contributing to the operation of emission-dependent engineering machinery remanufacturing with emission abatement?," International Journal of Production Economics, Elsevier, vol. 266(C).
    2. Shraddha Mishra & Surya Prakash Singh, 2022. "A stochastic disaster-resilient and sustainable reverse logistics model in big data environment," Annals of Operations Research, Springer, vol. 319(1), pages 853-884, December.
    3. Zakaria Chekoubi & Wajdi Trabelsi & Nathalie Sauer & Ilias Majdouline, 2022. "The Integrated Production-Inventory-Routing Problem with Reverse Logistics and Remanufacturing: A Two-Phase Decomposition Heuristic," Sustainability, MDPI, vol. 14(20), pages 1-30, October.
    4. Zhou, Xiaoyang & Wei, Xiaoya & Lin, Jun & Tian, Xin & Lev, Benjamin & Wang, Shouyang, 2021. "Supply chain management under carbon taxes: A review and bibliometric analysis," Omega, Elsevier, vol. 98(C).
    5. Yongjian Wang & Fei Wang & Wenbo Li, 2023. "Effects of the Carbon Credit Policy on the Capital-Constrained Manufacturer’s Remanufacturing and Emissions Decisions," IJERPH, MDPI, vol. 20(5), pages 1-17, February.
    6. Abdelghani Bekrar & Abdessamad Ait El Cadi & Raca Todosijevic & Joseph Sarkis, 2021. "Digitalizing the Closing-of-the-Loop for Supply Chains: A Transportation and Blockchain Perspective," Sustainability, MDPI, vol. 13(5), pages 1-25, March.
    7. Mingyuan Wei & Hao Guan & Yunhan Liu & Benhe Gao & Canrong Zhang, 2020. "Production, Replenishment and Inventory Policies for Perishable Products in a Two-Echelon Distribution Network," Sustainability, MDPI, vol. 12(11), pages 1-26, June.
    8. Zhou, Jian & Li, Hui & Gu, Yujie & Zhao, Mingxuan & Xie, Xuehui & Zheng, Haoran & Fang, Xinghua, 2021. "A novel two-phase approach for the bi-objective simultaneous delivery and pickup problem with fuzzy pickup demands," International Journal of Production Economics, Elsevier, vol. 234(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yiqiang Zhang & Hussam Alshraideh & Ali Diabat, 2018. "A stochastic reverse logistics production routing model with environmental considerations," Annals of Operations Research, Springer, vol. 271(2), pages 1023-1044, December.
    2. Zakaria Chekoubi & Wajdi Trabelsi & Nathalie Sauer & Ilias Majdouline, 2022. "The Integrated Production-Inventory-Routing Problem with Reverse Logistics and Remanufacturing: A Two-Phase Decomposition Heuristic," Sustainability, MDPI, vol. 14(20), pages 1-30, October.
    3. Xuanjing Fang & Yanan Du & Yuzhuo Qiu, 2017. "Reducing Carbon Emissions in a Closed-Loop Production Routing Problem with Simultaneous Pickups and Deliveries under Carbon Cap-and-Trade," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    4. Qiu, Yuzhuo & Ni, Ming & Wang, Liang & Li, Qinqin & Fang, Xuanjing & Pardalos, Panos M., 2018. "Production routing problems with reverse logistics and remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 87-100.
    5. Tang, Christopher S. & Zhou, Sean, 2012. "Research advances in environmentally and socially sustainable operations," European Journal of Operational Research, Elsevier, vol. 223(3), pages 585-594.
    6. Shoufeng Ji & Dan Zhao & Xiaoshuai Peng, 2018. "Joint Decisions on Emission Reduction and Inventory Replenishment with Overconfidence and Low-Carbon Preference," Sustainability, MDPI, vol. 10(4), pages 1-21, April.
    7. Zhitao Xu & Adel Elomri & Shaligram Pokharel & Fatih Mutlu, 2019. "The Design of Green Supply Chains under Carbon Policies: A Literature Review of Quantitative Models," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    8. Zhou, Xiaoyang & Wei, Xiaoya & Lin, Jun & Tian, Xin & Lev, Benjamin & Wang, Shouyang, 2021. "Supply chain management under carbon taxes: A review and bibliometric analysis," Omega, Elsevier, vol. 98(C).
    9. Saberi, Sara, 2018. "Sustainable, multiperiod supply chain network model with freight carrier through reduction in pollution stock," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 421-444.
    10. De Giovanni, Pietro & Zaccour, Georges, 2014. "A two-period game of a closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 232(1), pages 22-40.
    11. Castellano, Davide & Gallo, Mosè & Grassi, Andrea & Santillo, Liberatina C., 2019. "The effect of GHG emissions on production, inventory replenishment and routing decisions in a single vendor-multiple buyers supply chain," International Journal of Production Economics, Elsevier, vol. 218(C), pages 30-42.
    12. Xiong, Yu & Zhou, Yu & Li, Gendao & Chan, Hing-Kai & Xiong, Zhongkai, 2013. "Don’t forget your supplier when remanufacturing," European Journal of Operational Research, Elsevier, vol. 230(1), pages 15-25.
    13. Kyung Sung Jung & Milind Dawande & H. Neil Geismar & V. Daniel R. Guide & Chelliah Sriskandarajah, 2016. "Supply planning models for a remanufacturer under just-in-time manufacturing environment with reverse logistics," Annals of Operations Research, Springer, vol. 240(2), pages 533-581, May.
    14. Zhou, Qin & Meng, Chao & Yuen, Kum Fai & Sheu, Jiuh-Biing, 2021. "Remanufacturing authorization strategy for an original equipment manufacturer-contract manufacturer supply chain: Cooperation or competition?," International Journal of Production Economics, Elsevier, vol. 240(C).
    15. Yunting Feng & Yong Geng & Ge Zhao & Mengya Li, 2022. "Carbon Emission Constraint Policy in an OEM and Outsourcing Remanufacturer Supply Chain with Consumer Preferences," IJERPH, MDPI, vol. 19(8), pages 1-16, April.
    16. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2021. "Green vehicle routing problem: A state-of-the-art review," International Journal of Production Economics, Elsevier, vol. 231(C).
    17. Cao, Jian & Wu, Sisi & Kumar, Sanjay, 2023. "Recovering and remanufacturing to fulfill EPR regulation in the presence of secondary market," International Journal of Production Economics, Elsevier, vol. 263(C).
    18. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    19. Ghosh, Debabrata & Shah, Janat, 2012. "A comparative analysis of greening policies across supply chain structures," International Journal of Production Economics, Elsevier, vol. 135(2), pages 568-583.
    20. Liu, Jing & Xia, Senmao & Wang, Zhaoxing & Nie, Jiajia & Ameen, Nisreen & Yan, Cheng & Lim, Ming K., 2023. "How to balance economic profits and environmental protection: The impacts of cash hedging on remanufacturing firms," International Journal of Production Economics, Elsevier, vol. 258(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:213:y:2019:i:c:p:201-216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.