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A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design

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Abstract

Growing awareness of environmental issues is prompting the development of sustainable supply chain management. Closed-loop supply chains in which used products can be returned for remanufacture are becoming increasingly popular. This paper introduces a two-phase approach to the design of supply chain networks taking into account carbon emission and remanufacturing. In the first phase, a continuous approximation model is used to design the forward supply chain network. The objective is to minimize the total forward network cost by simultaneously determining the number and the service areas of distribution centers (DCs) and the replenishment cycle time for DCs. A nonlinear optimization technique is used to solve the forward supply chain network design problem. In the second phase, a reverse supply chain network is formulated based on the results of the first phase to determine the optimal number and service areas of remanufacturing centers (RCs) and the replenishment cycle time for RCs. Finally, numerical analyses are conducted to show the solution approach and provide some managerial insights.

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Acknowledgements

This paper is supported in part by the Ministry of Science and Technology under Grant MOST 105-2221-E-011-099-MY3 and 104-2221-E-011-171-MY3.

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Authors and Affiliations

  1. Department of Industrial Management, National Taiwan University of Science and Technology, Taipei, Taiwan

    Yu-Chung Tsao, Vu-Thuy Linh & Vincent Yu

  2. School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, USA

    Jye-Chyi Lu

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  1. Yu-Chung Tsao
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  2. Vu-Thuy Linh
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  3. Jye-Chyi Lu
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  4. Vincent Yu
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Correspondence to Yu-Chung Tsao.

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Tsao, YC., Linh, VT., Lu, JC. et al. A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design. J Intell Manuf 29, 693–705 (2018). https://doi.org/10.1007/s10845-017-1296-4

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  • DOI: https://doi.org/10.1007/s10845-017-1296-4

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