Optimizing the Sustainability in the Supply Chain for Imperfect Deteriorating Items under Remanufacturing and Carbon Emission Regulation

Abstract

In the previous few years, it has become increasingly important to reduce emissions of carbon in the chain of supply. The three-echelon supply chain model for inventory presented in this paper takes into the emissions of carbon from production, remanufacturing, storage, transport and disposal of deteriorating products, among other stages of the supply chain. Particularly, the approach includes a third-party logistics company (3PL) with a simplified setting and much distribution capacity, and it incorporates producer checks to reduce limited product supply. The main goal is to determine the capacity of various regulations, such as offsets for carbon, carbon taxes, and carbon cap-and-trade are at reduce overall costs and decrease the impact of carbon emissions. Further to making production and recycling decisions for the producer based on fluctuating customer demands, the model also suggests the best delivery dates, amounts, and durations for the third-party Logistics Company and customer. The study indicates that, among the regulatory strategies examined carbon cap-and-trade has the most impact. The managers of supply chains can reduce emissions of carbon by using this model to arrange transportation, dispose of waste, and effectively manage inventories. Furthermore, the results provide decision-makers with useful direction for developing economic carbon control legislation, supporting environmentally friendly production and rework able procedures, and establishing a balance between concern for the environment and cost-effectiveness.

Keywords

Deteriorating products / remanufacturing / carbon emission / supply chain / regulatory strategies / imperfect production

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