Strategic closed-loop facility location problem with carbon market trading

Ali Diabat, Tarek Abdallah, Abbas Al-Refaie, Davor Svetinovic, Kannan Govindan

    Research output: Contribution to journalArticle

    Abstract

    The burgeoning environmental regulations are forcing companies to green their supply chains by integrating all of their business value-adding operations so as to minimize the impact on the environment. One dimension of greening the supply chain is extending the forward supply chain to collection and recovery of products in a closed-loop configuration. Remanufacturing is the basis of profit-oriented reverse logistics in which recovered products are restored to a marketable condition in order to be resold to the primary or secondary market. In this paper, we introduce a multiechelon multicommodity facility location problem with a trading price of carbon emissions and a cost of procurement. The company might either incur costs if the carbon cap, normally assigned by regulatory agencies, is lower than the total emissions, or gain profit if the carbon cap is higher than the total emissions. A numerical study is presented which studies the impact of different carbon prices on cost and configuration of supply chains.

    Original languageEnglish (US)
    Article number6303900
    Pages (from-to)398-408
    Number of pages11
    JournalIEEE Transactions on Engineering Management
    Volume60
    Issue number2
    DOIs
    StatePublished - Jan 1 2013

    Fingerprint

    Supply chains
    Carbon
    Profitability
    Costs
    Industry
    Environmental regulations
    Logistics
    Recovery
    Supply chain
    Location problem
    Facility location
    Carbon markets
    Profit
    Procurement
    Green supply chain
    Carbon price
    Remanufacturing
    Reverse logistics
    Multi-echelon
    Environmental regulation

    Keywords

    • Carbon credits
    • closed-loop supply chain
    • disposal
    • flexible legislation
    • recycling
    • remanufacturing
    • reverse logistics

    ASJC Scopus subject areas

    • Strategy and Management
    • Electrical and Electronic Engineering

    Cite this

    Diabat, A., Abdallah, T., Al-Refaie, A., Svetinovic, D., & Govindan, K. (2013). Strategic closed-loop facility location problem with carbon market trading. IEEE Transactions on Engineering Management, 60(2), 398-408. [6303900]. https://doi.org/10.1109/TEM.2012.2211105

    Strategic closed-loop facility location problem with carbon market trading. / Diabat, Ali; Abdallah, Tarek; Al-Refaie, Abbas; Svetinovic, Davor; Govindan, Kannan.

    In: IEEE Transactions on Engineering Management, Vol. 60, No. 2, 6303900, 01.01.2013, p. 398-408.

    Research output: Contribution to journalArticle

    Diabat, A, Abdallah, T, Al-Refaie, A, Svetinovic, D & Govindan, K 2013, 'Strategic closed-loop facility location problem with carbon market trading', IEEE Transactions on Engineering Management, vol. 60, no. 2, 6303900, pp. 398-408. https://doi.org/10.1109/TEM.2012.2211105
    Diabat, Ali ; Abdallah, Tarek ; Al-Refaie, Abbas ; Svetinovic, Davor ; Govindan, Kannan. / Strategic closed-loop facility location problem with carbon market trading. In: IEEE Transactions on Engineering Management. 2013 ; Vol. 60, No. 2. pp. 398-408.
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