Campus Units
Industrial and Manufacturing Systems Engineering
Document Type
Article
Publication Version
Accepted Manuscript
Publication Date
1-2018
Journal or Book Title
International Journal of Production Economics
Volume
195
First Page
118
Last Page
131
Research Focus Area(s)
Operations Research
DOI
10.1016/j.ijpe.2017.09.009
Abstract
We optimize the design of a closed-loop supply chain network that encompasses flows in both forward and reverse directions and is subject to uncertainty in demands for both new and returned products. The model also accommodates a carbon tax with tax rate uncertainty. The proposed model is a three-stage hybrid robust/stochastic program that combines probabilistic scenarios for the demands and return quantities with uncertainty sets for the carbon tax rates. The first stage decisions are facility investments, the second stage concerns the plan for distributing new and collecting returned products after realization of demands and returns, and the numbers of transportation units of various modes are the third stage decisions. The second- and third-stage decisions may adjust to the realization of the carbon tax rate. For computational tractability, we restrict them to be affine functions of the carbon tax rate. Benders cuts are generated using recent duality developments for robust linear programs. Computational results show that adjusting product flows to the tax rate provides negligible benefit, but the ability to adjust transportation mode capacities can substitute for building additional facilities as a way to respond to carbon tax uncertainty.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Copyright Owner
Elsevier B.V.
Copyright Date
2017
Language
en
File Format
application/pdf
Recommended Citation
Haddadsisakht, Ali and Ryan, Sarah M., "Closed-loop supply chain network design with multiple transportation modes under stochastic demand and uncertain carbon tax" (2018). Industrial and Manufacturing Systems Engineering Publications. 173.
https://lib.dr.iastate.edu/imse_pubs/173
Included in
Industrial Engineering Commons, Operational Research Commons, Systems Engineering Commons
Comments
This is a manuscript of an article published as Haddad-Sisakht, Ali, and Sarah M. Ryan. "Closed-loop supply chain network design with multiple transportation modes under stochastic demand and uncertain carbon tax." International Journal of Production Economics (2018). 10.1016/j.ijpe.2017.09.009. Posted with permission.