A robust closed loop supply chain network design under different carbon emission policies

Abstract

Recently, the topic of designing a closed loop supply chain network has attracted researchers’ attention due to the enormous financial and environmental benefits obtained from its practices. This paper addresses a new model of designing a closed loop supply chain network, which considers a downward product substitution policy under four carbon emission regulation policies: carbon cap, carbon tax, carbon cap-and-trade and carbon offset. To solve the assumed uncertainties of product demand and number of products returned, robust optimization is adopted. The aim of the model proposed is to select which facility to open/operate, select a transportation mode and determine the quantity of shipped and substituted products. We show a numerical example of using the four carbon emission regulation policies.

Keywords

• carbon regulatory policies
• closed loop supply chain
• downward substitution
• robust optimization
• karbon düzenleme politikaları
• kapalı çevrim tedarik zinciri
• aşağıya doğru ikame
• robust optimizasyon