IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v349y2025i2d10.1007_s10479-022-04591-w.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Jianquan Guo & Guanlan Wang & Zhen Wang & Chengji Liang & Mitsuo Gen, 2025. "Research on remanufacturing closed loop supply chain based on incentive-compatibility theory under uncertainty," Annals of Operations Research, Springer, vol. 349(2), pages 1203-1224, June.
    • Handle: RePEc:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-022-04591-w
    DOI: 10.1007/s10479-022-04591-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04591-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04591-w?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Mukhopadhyay, Samar K. & Ma, Huafan, 2009. "Joint procurement and production decisions in remanufacturing under quality and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 120(1), pages 5-17, July.
    2. Hongtao Ren & Wenji Zhou & Marek Makowski & Hongbin Yan & Yadong Yu & Tieju Ma, 2021. "Incorporation of life cycle emissions and carbon price uncertainty into the supply chain network management of PVC production," Annals of Operations Research, Springer, vol. 300(2), pages 601-620, May.
    3. Yenipazarli, Arda, 2016. "Managing new and remanufactured products to mitigate environmental damage under emissions regulation," European Journal of Operational Research, Elsevier, vol. 249(1), pages 117-130.
    4. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    5. Hark Hwang & Young Dae Ko & Sang Hun Yune & Chang Seong Ko, 2009. "A closed-loop recycling system with a minimum allowed quality level on returned products," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 5(6), pages 758-773.
    6. E. Allevi & A. Gnudi & I. V. Konnov & G. Oggioni, 2018. "Evaluating the effects of environmental regulations on a closed-loop supply chain network: a variational inequality approach," Annals of Operations Research, Springer, vol. 261(1), pages 1-43, February.
    7. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    8. Chen, Cheng-Kang & Ulya, M. Akmalul ', 2019. "Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing," International Journal of Production Economics, Elsevier, vol. 210(C), pages 211-223.
    9. Fang, Yaner & Shou, Biying, 2015. "Managing supply uncertainty under supply chain Cournot competition," European Journal of Operational Research, Elsevier, vol. 243(1), pages 156-176.
    10. Shi, Lei & Wu, Kuo-Jui & Tseng, Ming-Lang, 2017. "Improving corporate sustainable development by using an interdependent closed-loop hierarchical structure," Resources, Conservation & Recycling, Elsevier, vol. 119(C), pages 24-35.
    11. Chan, Chi Kin & Zhou, Yan & Wong, Kar Hung, 2018. "A dynamic equilibrium model of the oligopolistic closed-loop supply chain network under uncertain and time-dependent demands," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 325-354.
    12. De Giovanni, Pietro, 2018. "A joint maximization incentive in closed-loop supply chains with competing retailers: The case of spent-battery recycling," European Journal of Operational Research, Elsevier, vol. 268(1), pages 128-147.
    13. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    14. Haddadsisakht, Ali & Ryan, Sarah M., 2018. "Closed-loop supply chain network design with multiple transportation modes under stochastic demand and uncertain carbon tax," International Journal of Production Economics, Elsevier, vol. 195(C), pages 118-131.
    Full references (including those not matched with items on IDEAS)

    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. Zhou, Yongyi & Zhang, Yulin & Wahab, M.I.M. & Goh, Mark, 2023. "Channel leadership and performance for a closed-loop supply chain considering competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    2. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    3. Yuhao Zhang & Qian Zhang & Ren Hu & Man Yang, 2025. "Optimal Strategy and Performance for a Closed-Loop Supply Chain with Different Channel Leadership and Cap-and-Trade Regulation," Sustainability, MDPI, vol. 17(3), pages 1-41, January.
    4. Wang, Wenbin & Yang, Siqi & Xu, Lei & Yang, Xiaoli, 2019. "Carrot/stick mechanisms for collection responsibility sharing in multi-tier closed-loop supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 366-387.
    5. Zheng, Xiao-Xue & Li, Deng-Feng & Liu, Zhi & Jia, Fu & Sheu, Jiuh-Biing, 2019. "Coordinating a closed-loop supply chain with fairness concerns through variable-weighted Shapley values," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 227-253.
    6. Sadia Samar Ali & Rajbir Kaur & D. Jinil Persis & Raiswa Saha & Murugan Pattusamy & V. Raja Sreedharan, 2023. "Developing a hybrid evaluation approach for the low carbon performance on sustainable manufacturing environment," Annals of Operations Research, Springer, vol. 324(1), pages 249-281, May.
    7. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    8. 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.
    9. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    10. Sadia Samar Ali & Rajbir Kaur & Shahbaz Khan, 2023. "Evaluating sustainability initiatives in warehouse for measuring sustainability performance: an emerging economy perspective," Annals of Operations Research, Springer, vol. 324(1), pages 461-500, May.
    11. He, Qidong & Wang, Nengmin & Yang, Zhen & He, Zhengwen & Jiang, Bin, 2019. "Competitive collection under channel inconvenience in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 155-166.
    12. He, Qidong & Wang, Nengmin & Browning, Tyson R. & Jiang, Bin, 2022. "Competitive collection with convenience-perceived customers," European Journal of Operational Research, Elsevier, vol. 303(1), pages 239-254.
    13. Fu Jia & Yan Jiang, 2018. "Sustainable Global Sourcing: A Systematic Literature Review and Bibliometric Analysis," Sustainability, MDPI, vol. 10(3), pages 1-26, February.
    14. Qiyao Liu & Xiaodong Zhu, 2024. "Incentive strategies for retired power battery closed-loop supply chain considering corporate social responsibility," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 19013-19050, July.
    15. Niu, Baozhuang & Ruan, Yiyuan & Yu, Xinhu, 2024. "Purchasing new for remanufacturing: Sourcing co-opetition, tax-planning and data validation," International Journal of Production Economics, Elsevier, vol. 273(C).
    16. Pazoki, Mostafa & Samarghandi, Hamed, 2020. "Take-back regulation: Remanufacturing or Eco-design?," International Journal of Production Economics, Elsevier, vol. 227(C).
    17. Qi Wang & Dunbing Tang & Shipei Li & Jun Yang & Miguel A. Salido & Adriana Giret & Haihua Zhu, 2019. "An Optimization Approach for the Coordinated Low-Carbon Design of Product Family and Remanufactured Products," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    18. Wang, Junbin & Zhang, Ting & Fan, Xiaojun, 2020. "Reverse channel design with a dominant retailer and upstream competition in emerging markets: Retailer- or manufacturer- collection?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    19. Yanfen Mu & Feng Niu, 2022. "To Be or Not to Be? Strategic Analysis of Carbon Tax Guiding Manufacturers to Choose Low-Carbon Technology," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    20. Yang Lv & Xinhua Bi & Quanxi Li & Haowei Zhang, 2022. "Research on Closed-Loop Supply Chain Decision Making and Recycling Channel Selection under Carbon Allowance and Carbon Trading," Sustainability, MDPI, vol. 14(18), pages 1-17, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-022-04591-w. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.