Research on Remanufacturing Closed-Loop Logistics Network Design under Low-Carbon Restriction

Abstract:

In this paper we study how to trade off the economic and ecological effects in the remanufacturing closed-loop logistics network design in the context of low-carbon economy. We establish a multi-objective mixed integer linear programming model to find the optimal facility locations and materials flow allocation. In the objective function, we set three minimum targets: economic cost, CO2 emission and waste generation. Through an iterative algorithm, we get the Pareto Frontier of our problem. In the numeric study, we find 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. Also, to meet the need of low-carbon dioxide, we plot 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. 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.

• Periodical: Applied Mechanics and Materials (Volume 159)
• Pages: 224-234
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.159.224
• Online since: March 2012
• Authors: Ya Can Wang, Tao Lu, Chun Hua Gao, Chun Hui Zhang, Chi Chen
• Keywords: Closed-Loop Supply Chain, Eco-Efficiency, Logistic Network Design, Low-Carbon Economy (LCE), Remanufacturing

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[15] Shijiao Fang, Low-carbon Development in the Context of the Green Economy, Chinese Journal of Population, Resource and Environment, 2010. 20(4): 8-11. Appendix 1 We randomly generated 5 potential factories, 6 potential distribution centers and recycling centers, 8 markets and the coordinates (km) of 4 disposal facilities, as depicted in table 3. Take refrigerator as example, each refrigerator is about 65 kilograms and the transportation cost is 2 Yuan/ton each kilometer. Transportation consumes 0.015 liter/ton each kilometer. The manufacturing cost per unit is 300 Yuan, and it consumes 1 kilowatt. According to CO2 emission index, 2.69 kg CO2 emits for every liter of gasoline and 0.785kg for each kilowatt. The fixed cost of facilities is illustrated in table 4. There are 100 refrigerators demanded for each market, the capacity of each factory is 500 and the maximum capacity for distribution center and recycling center is 300 and 200 respectively. Table3. Potential Locations' Coordinates Distribution Center Recycling Center Market y x y x y 65.55 59.47 70.36 96.16 60.20 85.80 39.19 56.57 48.50 5.89 25.36 33.58 62.73 71.65 11.46 36.03 87.35 68.02 69.91 51.13 66.49 54.85 51.34 5.34 39.72 77.64 36.54 26.18 73.27 35.67 41.36 48.93 14.00 59.73 42.22 49.83 Factory Disposal Facility 96.14 43.44 x y x y 7.21 56.25 41.99 19.39 75.05 80.30 　 75.37 90.48 74.00 8.39 　 79.39 56.92 43.19 94.55 　 92.00 63.18 63.43 91.59 　 84.47 23.44 　 　 　 　 Fixed cost of factories（RMB） f1 f2 f3 f4 f5 300000 400000 300000 300000 300000 Fixed cost of distribution centers（RMB） w1 w2 w3 w4 w5 w6 30000 20000 20000 20000 20000 20000 Fixed cost of recycling center（RMB） r1 r2 r3 r4 r5 r6 10000 10000 10000 10000 10000 10000 Table 4. The Fixed Cost of Facilities Appendix 2 Table 5. Notations Notation Meaning Note manufacturing/remanufacturing factory distribution center recycling center distribution/recycling center the market disposal facility potential distribution center potential recycling center optimization objectives Table 6. Decision variables in the model Type Decision variables Meaning Location decision variables whether building factory in m whether building distribution center in i whether building recycling center in j Materials flow allocation the amount of products delivered from factory m to distribution center i products delivered from distribution center i to market c products delivered from market c to recycling center j products delivered from recycling center j to factory m products delivered from recycling center j to disposal facility d Table 7. Parameters in the model Type Parameter Meaning Market demand demand of market c Capacity capacity available at factory in m maximum capacity of the distribution center in i maximum capacity of the recycling center in j Cost fixed cost of factory establishment in m fixed cost of distribution center establishment in i fixed cost of recycling center establishment in j Cost per unit of each unit from factory m to distribution center i Cost for transportation per unit from distribution center i to market c Cost for transportation per unit from market c to recycling center j Cost for transportation per unit from recycling center j to disposal facility d Cost for transportation per unit from recycling center j to factory m Cost of manufacturing one product Cost saved by remanufacturing one product Carbon emission Carbon emitted during the transportation from factory m to distribution center i per unit Carbon emitted during the transportation from distribution center i to market c per unit Carbon emitted during the transportation from market c to recycling center j per unit Carbon emitted during the transportation from recycling center j to disposal facility d per unit Carbon emitted during the transportation from recycling center j to factory m per unit Carbon emitted when manufacturing each new product Carbon emission cut by remanufacturing each product Recovery rate return rate of products in market c Recovery rate, the ratio of recoverable products to collected discarded ones cost substitution rate, which shows the ratio of the cost saved by remanufacturing to manufacturing