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The Variational Inequality Model of Closed-Loop Supply Chain Network Equilibrium with Environmental Indicators

In: Liss 2014

Author

Listed:
  • Ziqiu Wei

    (Hebei University of Science and Technology)

  • Jia Jiang

    (Hebei University of Science and Technology)

  • Shiqin Xu

    (Renmin University of China)

Abstract

Through variational inequality theory, we propose a model of the closed-loop supply chain network equilibrium with environmental indicators, consisting of raw material suppliers, manufacturers collecting recycled products directly, retailers and demand markets. To promote sustainable development, the Ministry of Environmental Protection set different upper limits of emission in the form of legislation in order to prevent the manufacturers from exceeding the limits. Specifically, the penalties should be greater than the corresponding shadow prices serving as the environmental indicators in the model. We describe their optimal behavior for pursuing maximum profit, establish the optimality conditions of four-tier decision-makers and provide the variational inequality in accordance with the closed-loop supply chain network equilibrium conditions.

Suggested Citation

  • Ziqiu Wei & Jia Jiang & Shiqin Xu, 2015. "The Variational Inequality Model of Closed-Loop Supply Chain Network Equilibrium with Environmental Indicators," Springer Books, in: Zhenji Zhang & Zuojun Max Shen & Juliang Zhang & Runtong Zhang (ed.), Liss 2014, edition 127, pages 1543-1548, Springer.
    • Handle: RePEc:spr:sprchp:978-3-662-43871-8_222
    DOI: 10.1007/978-3-662-43871-8_222
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    Cited by:

    1. Longfei He & Qinxu Gu & Junsong Bian & Kin Keung Lai & Xiao Zhang, 2023. "To Pool or Not to Pool in Carbon Quotas: Analyses of Emission Regulation and Operations in Supply Chain Supernetwork under Cap-and-Trade Policy," Annals of Operations Research, Springer, vol. 324(1), pages 311-353, May.

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