Eco-efficient based logistics network design in hybrid manufacturing/ remanufacturing system in low-carbon economy
Abstract: Low-carbon economy
requires the pursuit of eco-efficiency, which is a win-win situation between
economic and environmental efficiency. In this paper the question of trading off
the economic and environmental effects embodied in eco-efficiency in the hybrid
manufacturing/remanufacturing logistics network design in the context of
low-carbon economy is examined.
Design/methodology/approach: A multi-objective mixed integer linear programming
model to find the optimal facility locations and materials flow allocation is
established. In the objective function, three minimum targets are set: economic
cost, CO2 emission and waste generation. Through an iterative algorithm, the
Pareto Boundary of the problem is obtained.
Findings: The results of numeric study show that in order to achieve a
Pareto improvement over an original system, three of the critical rates (i.e.
return rate, recovery rate, and cost substitute rate) should be increased.
Practical implications: To meet the need of low-carbon dioxide, an iso-
CO2 emission curve in which decision makers have a series of optimal choices
with the same CO2 emission but different cost and waste generation is plotted.
Each choice may have different network design but all of these are Pareto
optimal solutions, which provide a comprehensive evaluation of both economics
and ecology for the decision making.
Originality/value: This research chooses carbon emission as one of the
three objective functions and uses Pareto sets to analyze how to balance
profitability and environmental impacts in designing remanufacturing
closed-loop supply chain in the context of low-carbon economy.
Keywords: hybrid
manufacturing/remanufacturing system, tradeoff, pareto improvement, logistic
network design, low-carbon economy, eco-efficiency
Author: Yacan Wang, Xiaoxia
Zhu, Tao Lu, Ananda S. Jeeva
Journal Code: jptindustrigg130058
