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Impact of carbon emission policies on manufacturing, remanufacturing and collection of used item decisions with price dependent return rate

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  • Soumita Kundu

    (Sister Nibedita Government General Degree College for Girls)

  • Tripti Chakrabarti

    (University of Calcutta)

Abstract

Industries across the world today are looking for cost effective solutions to reduce waste and curb the carbon emission, due to heightened awareness about ecological responsibility coupled with stringent government regulation and legislations, through operational adjustments in manufacturing/remanufacturing and collection (used products) policy. This paper presents a production, remanufacture and waste disposal EPQ model under different carbon regulatory mechanisms of a firm that sells new and repaired versions of its product at two different markets and it is assumed that remanufactured items are of poorer quality; i.e., not ’as-good-as new’. In reality, the return rates of used product from the end customers of both markets are influenced by the purchasing price, and therefore this study suggests that the return flow of used product as an increasing function of purchasing price. We studied the optimization model under two scenarios: (i) no carbon emission policy (ii) carbon emission norms (a. carbon tax; b. strict carbon cap; c. carbon cap and trade). Mathematical modeling followed by numerical analysis is carried out to examine the impact of regulatory policies on optimal decisions and overall emissions. The results indicate that remanufacturing is an effective strategy to decrease carbon emission compared to manufacturing process.

Suggested Citation

  • Soumita Kundu & Tripti Chakrabarti, 2018. "Impact of carbon emission policies on manufacturing, remanufacturing and collection of used item decisions with price dependent return rate," OPSEARCH, Springer;Operational Research Society of India, vol. 55(2), pages 532-555, June.
    • Handle: RePEc:spr:opsear:v:55:y:2018:i:2:d:10.1007_s12597-018-0336-y
    DOI: 10.1007/s12597-018-0336-y
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    References listed on IDEAS

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    Cited by:

    1. Kaifu Yuan & Guangqiang Wu & Hui Dong & Bo He & Dafei Wang, 2020. "Differential Pricing and Emission Reduction in Remanufacturing Supply Chains with Dual-Sale Channels under CCT-Mechanism," Sustainability, MDPI, vol. 12(19), pages 1-27, October.
    2. Rubayet Karim & Koichi Nakade, 2022. "A Literature Review on the Sustainable EPQ Model, Focusing on Carbon Emissions and Product Recycling," Logistics, MDPI, vol. 6(3), pages 1-16, August.
    3. Tapan Kumar Datta & Prasanta Nath & Karabi Dutta Choudhury, 2020. "A hybrid carbon policy inventory model with emission source-based green investments," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 202-220, March.
    4. Jauhari, Wakhid Ahmad & Adam, Niimas Ayu Frensilia Putri & Rosyidi, Cucuk Nur & Pujawan, I Nyoman & Shah, Nita H., 2020. "A closed-loop supply chain model with rework, waste disposal, and carbon emissions," Operations Research Perspectives, Elsevier, vol. 7(C).
    5. Tong Shu & Qian Liu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints," Sustainability, MDPI, vol. 10(12), pages 1-25, November.
    6. 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.
    7. Shuiying Zhao & Yi Xu & Conghu Liu & Fangfang Wei, 2022. "Impact of Carbon Tax and Subsidy Policies on Original Equipment Manufacturers and Remanufacturing Companies from the Perspective of Carbon Emissions," IJERPH, MDPI, vol. 19(10), pages 1-16, May.

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