Corporate Social Responsibility Practices in the U.S.: Using Reverse Supply Chain Network Design and Optimization Considering Carbon Cost

Abstract

A research model using the market price for greenhouse gas (GHG) emissions illustrates how the policies, and economic and environment implications of the carbon price can be formulated using a deterministic equilibrium model. However, with increasing carbon costs, the optimal reverse supply chain (RSC) system is being required to adapt and has undergone many distinct shifts in character as it seeks out new configurations through which costs may be effectively managed and minimized. The model was studied comprehensively in terms of quantitative performance using orthogonal arrays. The results were compared to top-down estimates produced through economic input-output life cycle assessment (EIO-LCA) models, providing a basis to contrast remanufacturing GHG emission quantities with those realized through original equipment manufacturing operations. Introducing a carbon cost of $40/t CO2e increased modeled remanufacturing costs by 2.7%, but also increased original equipment costs by 2.3%. The research presented in this study puts forward the theoretical modeling of optimal RSC systems and provides an empirical case study concerning remanufactured appliances, an area of current industrial literature in which there is a dearth of study.

A Review on Remanufacturing Reverse Logistics Network Design and Model Optimization

“…Taking into consideration environmental objectives in the process of the network design optimization can minimize environmental problems associated with remanufacturing. In the reviewed papers, environmental objectives are mainly achieved by minimizing environmental impacts or maximizing environmental benefits, such as the minimization of carbon emissions [24,25,30,31,35,47,66,70,76,84,[88][89][90][91], the maximization of green performances [78,87,92,93], minimum pollution emissions [66], minimum environmental problems [94], minimum environmental impacts of facilities and treatment processes [48,85], transportation [86] and transportation channels [81], maximising the environmental benefits of clean technology and recyclable materials [95] and the environmental benefits of recycled products [87].…”

Reverse Logistics Network Design and Simulation for Automatic Teller Machines Based on Carbon Emission and Economic Benefits: A Study of the Anhui Province ATMs Industry

“…Regions with high ELV generation are identified as well as relevant factors affecting total costs in the reverse supply chain. Part of the literature used multi-objective models and adopted environmental objectives apart from economic objectives in the multiobjective modelling [19][20][21].…”

“…Constraint (19) states that the percentage of P relative to R plus the percentage of M relative to R equals 1. Constraint (20) guarantees that the quantity flowing from O to C is equal to the sum of the quantities flowing from C to R, D, and L. Constraints (21) to (24) are the flow balance conditions of remanufacturing centers (R), module disassembly and recycling centers (L), producers (P), and warehouses (W), respectively. In addition, constraint ( 25) is a closed-loop flow balance condition composed of M and O.…”

A p-Robust Green Supply Chain Network Design Model under Uncertain Carbon Price and Demand

“…Kuo et al [15] used a multi-criteria method to design a supply chain network based on the results of a product environmental footprint. Alkhayyal [16] proposed a reverse supply chain optimization model that has been assembled to factor in the impact of supply chain operational and strategic actions on the environment. As observed, all previous modeling efforts assumed deterministic parameters, such as demand and cost, and most were concentrated in the case of a single period or single product.…”

“…Constraints (16)(17)(18) prevent production interruptions due to shortage of raw materials, product. Plants and warehouses usually set the corresponding minimum inventory as a guarantee.…”