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

Author

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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
    Department of Industrial and Systems Engineering, Faculty of Engineering, University of Florida, Gainesville, FL 32611, USA)

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.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2198-:d:120746
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    References listed on IDEAS

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    5. Xiaoyan Wang & Minggao Xue & Lu Xing, 2018. "Analysis of Carbon Emission Reduction in a Dual-Channel Supply Chain with Cap-And-Trade Regulation and Low-Carbon Preference," Sustainability, MDPI, vol. 10(3), pages 1-18, February.
    6. SungYong Choi & KyungBae Park & Sang-Oh Shim, 2019. "The Optimal Emission Decisions of Sustainable Production with Innovative Baseline Credit Regulations," Sustainability, MDPI, vol. 11(6), pages 1-16, March.

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