The Integrated Production-Inventory-Routing Problem with remanufacturing under carbon cap-and-trade

Abstract

Today, growing concerns over environmental issues due to industrial activities have led to the emergence of carbon control policies in the context of green logistics. Therefore, incorporating the concept of reverse logistics by taking account these regulations within regular production, inventory and distribution decision systems can lead to the development and implementation of increasingly sustainable supply chains. In this study, we consider a closed-loop supply chain with remanufacturing options under carbon cap-and-trade as carbon policy for carbon emissions. The aim is to incorporate carbon emissions into manufacturing, remanufacturing, inventory and routing decisions under carbon cape-and-trade policy. We provide a MILP model for the integrated Production-Inventory-Routing Problem with revers logistics by considering remanufacturing at production-inventory level and simultaneous deliveries and pickups at vehicle routing level. We performed several computational experiments on a set of instances generated randomly to demonstrate the relevance of our proposed modeling approach.