A remanufacturing inventory model to control the carbon emission using cap-and-trade regulation with the hexagonal fuzzy number

Abstract

PurposeThe awareness for protecting the environment has resulted in remanufacturing and recycling policies in manufacturing industries. Carbon emission is one of the most important elements affecting the environment. Carbon emission due to production and transportation creates complicated situations for the manufacturing firms by affecting the manufacturer's carbon quota. The ecological consequences posed in a reverse logistic model are the subject of this study.Design/methodology/approachThe present study explores the fuzzy model of economic production for both remanufacturing and recycling with uncertain cost parameters under the cap-and-trade rule to control the carbon emission due to different modes of transportation. Due to imprecise cost parameters, the hexagonal fuzzy numbers are set to fuzzify the overall cost, which leads to correct decisions in a more confident way. The result is defuzzified by using graded mean integration.FindingsThis study offers an explicit condition to control the carbon emission of the manufacturer and reduce the optimum cost. The findings indicate that the collection of used goods that can be remanufactured must be increased. The model is validated numerically. Sensitivity analysis explores the various aspects of different parameters on net cost to accomplish the fuzzy production model.Originality/valueUnder fuzzy inference, the research offers a relevant contribution in the field of recycling with controlling carbon emission by using the cap-and-trade policy. This study provides a trading strategy for a manufacturer's decision to avoid losses.