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Minimization of the Environmental Emissions of Closed-Loop Supply Chains: A Case Study of Returnable Transport Assets Management

Author

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  • Eleonora Bottani

    (Department of Engineering and Architecture, University of Parma, viale G.P. Usberti 181/A, 43124 Parma, Italy)

  • Giorgia Casella

    (Department of Engineering and Architecture, University of Parma, viale G.P. Usberti 181/A, 43124 Parma, Italy)

Abstract

This study investigates the issue of minimizing the environmental burden of a real closed-loop supply chain (CLSC), consisting of a pallet provider, a manufacturer and several retailers. A simulation model is developed under Microsoft Excel™ (Microsoft Corporation, Washington, US) to reproduce the flow of returnable transport items (RTIs) in the CLSC and to compute the corresponding environmental impact. Multi-objective optimization, including some relevant environmental key performance indicators (KPIs), is then carried out exploiting the commercial software ModeFRONTIER™ (ESTECO S.p.A., Trieste, Italy), to determine the settings that minimize emissions of the CLSC. In addition, economic and strategic metrics are taken into account in the optimization, to make the analysis more comprehensive. Three scenarios are considered (one “base” scenario and two scenarios examined in a sensitivity analysis) with different relative importance assigned to the metrics subject to optimization. Results show that the asset retrieving operations contribute to the environmental impact of the system to the greatest extent, mainly because of the quite relevant distance between Company A and its customers. Conversely, emissions due to the purchase of new assets contribute to the total environmental impact of the system to a very limited extent. Because the analysis is grounded on a real CLSC, the results are expected to provide practical indications to logistics and supply chain managers, to minimize the environmental performance of the system.

Suggested Citation

  • Eleonora Bottani & Giorgia Casella, 2018. "Minimization of the Environmental Emissions of Closed-Loop Supply Chains: A Case Study of Returnable Transport Assets Management," Sustainability, MDPI, vol. 10(2), pages 1-20, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:329-:d:129035
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    References listed on IDEAS

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    Cited by:

    1. Dapeng Yang & Daqing Wu & Luyan Shi, 2019. "Distribution-Free Stochastic Closed-Loop Supply Chain Design Problem with Financial Management," Sustainability, MDPI, vol. 11(5), pages 1-23, February.
    2. Fabiana Tornese & Maria Grazia Gnoni & Brian K. Thorn & Andres L. Carrano & Jennifer A. Pazour, 2021. "Management and Logistics of Returnable Transport Items: A Review Analysis on the Pallet Supply Chain," Sustainability, MDPI, vol. 13(22), pages 1-23, November.
    3. Ming Liu & Rongfan Liu & Zhanguo Zhu & Chengbin Chu & Xiaoyi Man, 2018. "A Bi-Objective Green Closed Loop Supply Chain Design Problem with Uncertain Demand," Sustainability, MDPI, vol. 10(4), pages 1-22, March.
    4. Najoua Lakhmi & Evren Sahin & Yves Dallery, 2022. "Modelling the Returnable Transport Items (RTI) Short-Term Planning Problem," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    5. Riccardo Accorsi & Giulia Baruffaldi & Riccardo Manzini & Chiara Pini, 2019. "Environmental Impacts of Reusable Transport Items: A Case Study of Pallet Pooling in a Retailer Supply Chain," Sustainability, MDPI, vol. 11(11), pages 1-13, June.
    6. Liu, Guoquan & Li, Lei & Chen, Jianghang & Ma, Fei, 2020. "Inventory sharing strategy and optimization for reusable transport items," International Journal of Production Economics, Elsevier, vol. 228(C).
    7. Letizia Tebaldi & Barbara Bigliardi & Eleonora Bottani, 2018. "Sustainable Supply Chain and Innovation: A Review of the Recent Literature," Sustainability, MDPI, vol. 10(11), pages 1-29, October.
    8. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    9. Jianhong He & Lei Zhang & Xiao Fu & Fu-Sheng Tsai, 2018. "Fair but Risky? Recycle Pricing Strategies in Closed-Loop Supply Chains," IJERPH, MDPI, vol. 15(12), pages 1-18, December.

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