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<p>In an era of growing environmental awareness and multi-channel retailing, developing sustainable and responsive supply chain strategies is critical. This study proposes a Closed-loop Supply Chain (CLSC) production-inventory model in which raw materials, procured from suppliers, are processed through a flexible production system that adapts to shifting demand. The final products are distributed to consumers through both online and offline retail channels, capturing a broader, price-sensitive market where customers may switch between channels based on relative price differences. Recognizing the increasing importance of circular economy practices, the model incorporates a dual recycling channel, enabling the direct collection of used products from customers. These returns are either recycled or remanufactured, reducing raw material dependency and extending product life cycles. Throughout the CLSC, spanning production, holding, transportation, recycling, and remanufacturing, carbon emissions are generated, posing environmental challenges. To address this issue, the model compares two key carbon regulations: the carbon tax and the carbon cap-and-trade. While the carbon tax imposes a direct cost on every unit of emissions, the cap-and-trade mechanism provides greater strategic flexibility and results in comparatively higher profits for the firm. To better capture the bi-objective trade-off between economic gains and environmental impact, the model is solved using Non-Dominated Sorting Genetic Algorithm II (NSGA-II) to show how operations adjust to emissions. The proposed model is benchmarked against three simplified systems: without recycling and remanufacturing, without the online channel, and without offline retailing, and outperforms them by 8.80%, 42.98%, and 64.13%, respectively. The comparative models exhibit higher carbon emissions by 7.40%, 1.88%, and 0.48% highlighting their inferior environmental outcomes. Sensitivity analysis further reveals the interaction between economic and environmental parameters, offering practical insights into optimizing pricing, production flexibility, and sustainability initiatives in complex multi-channel retail environments.</p>

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A Closed-Loop Supply Chain Model with Dual Recycling and Multi-Channel Retailing

  • 期刊论文

  • 发表日期：

    2026年2月28日

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  • Lalremruati Lalremruati,
  • Aditi Khanna

摘要

In an era of growing environmental awareness and multi-channel retailing, developing sustainable and responsive supply chain strategies is critical. This study proposes a Closed-loop Supply Chain (CLSC) production-inventory model in which raw materials, procured from suppliers, are processed through a flexible production system that adapts to shifting demand. The final products are distributed to consumers through both online and offline retail channels, capturing a broader, price-sensitive market where customers may switch between channels based on relative price differences. Recognizing the increasing importance of circular economy practices, the model incorporates a dual recycling channel, enabling the direct collection of used products from customers. These returns are either recycled or remanufactured, reducing raw material dependency and extending product life cycles. Throughout the CLSC, spanning production, holding, transportation, recycling, and remanufacturing, carbon emissions are generated, posing environmental challenges. To address this issue, the model compares two key carbon regulations: the carbon tax and the carbon cap-and-trade. While the carbon tax imposes a direct cost on every unit of emissions, the cap-and-trade mechanism provides greater strategic flexibility and results in comparatively higher profits for the firm. To better capture the bi-objective trade-off between economic gains and environmental impact, the model is solved using Non-Dominated Sorting Genetic Algorithm II (NSGA-II) to show how operations adjust to emissions. The proposed model is benchmarked against three simplified systems: without recycling and remanufacturing, without the online channel, and without offline retailing, and outperforms them by 8.80%, 42.98%, and 64.13%, respectively. The comparative models exhibit higher carbon emissions by 7.40%, 1.88%, and 0.48% highlighting their inferior environmental outcomes. Sensitivity analysis further reveals the interaction between economic and environmental parameters, offering practical insights into optimizing pricing, production flexibility, and sustainability initiatives in complex multi-channel retail environments.