Optimal Manufacturing-Reconditioning Decisions in a Reverse Logistic System under Periodic Mandatory Carbon Regulation

Abstract

Due to environmental concerns, firms are under increasing pressure to comply with legislations and to take up environmental strategies. This leads researchers and firms to develop new sustainable supply chains, where a new area has emerged for a manufacturing and reconditioning system. The originality of this work consists in simultaneously considering carbon emissions strategies, carbon tax and mandatory emission in a manufacturing-reconditioning system. The proposed system is composed of two parallel machines, a manufacturing stock, a reconditioning stock and a recovery inventory. In order to make the proposed green manufacturing system more realistic, it is assumed that manufactured (new products) and reconditioned products are distinguishable. The quantity of worn products (used products) depends on the sales in the previous periods, and the repair periods of the machines are stochastic and independent. The aim of this work is to determine the optimal capacities of manufacturing and reconditioning stocks that maximize the total profit, as well as the optimal value of worn products under two carbon emissions’ limitations. An evolutionary algorithm is developed, along with an efficient improvement method, to find the optimal value of decision variables. Ultimately, numerical results are provided to show the impact of the period of carbon limit and the worn products (returned products) on decision variables.