<p>The effective management of energy consumption and the reduction of emissions are crucial to sustainable supply chain management. Sustainability can be approached in a new way through smart energy. Smart energy combines traditional and renewable energy sources through a smart system that is more efficient than conventional energy for sustainability. The model creates a closed-loop supply chain management for tires production to find the efficiency of smart energy utilization and the remanufacturing of end-of-life tires to achieve the sustainability goal. The model determines the policy for using smart energy by finding the ratio of renewable to traditional energy. The players include a manufacturer, multiple retailers, and third-party logistics that consume energy for production and management. The manufacturer follows a manufacturing-remanufacturing strategy to produce new and remanufactured tires and supplies those tires to all retailers by following an optimal delivery schedule. The formulated profit function of the developed model is a mixed-integer nonlinear function. A classical optimization method is used to solve the model. The most important finding is that using 42% smart energy increases total profit by 12.71% and pulls down emissions by 41.98%. A mixed production strategy with variable remanufacturing earns 13.91% more profit.</p>

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Impact of smart energy on a three-echelon closed-loop supply chain management with reduction of carbon emissions

  • Nilkamal Bar,
  • Isha Sangal,
  • Biswajit Sarkar

摘要

The effective management of energy consumption and the reduction of emissions are crucial to sustainable supply chain management. Sustainability can be approached in a new way through smart energy. Smart energy combines traditional and renewable energy sources through a smart system that is more efficient than conventional energy for sustainability. The model creates a closed-loop supply chain management for tires production to find the efficiency of smart energy utilization and the remanufacturing of end-of-life tires to achieve the sustainability goal. The model determines the policy for using smart energy by finding the ratio of renewable to traditional energy. The players include a manufacturer, multiple retailers, and third-party logistics that consume energy for production and management. The manufacturer follows a manufacturing-remanufacturing strategy to produce new and remanufactured tires and supplies those tires to all retailers by following an optimal delivery schedule. The formulated profit function of the developed model is a mixed-integer nonlinear function. A classical optimization method is used to solve the model. The most important finding is that using 42% smart energy increases total profit by 12.71% and pulls down emissions by 41.98%. A mixed production strategy with variable remanufacturing earns 13.91% more profit.