A reverse logistics model with eco-design under the Stackelberg-Nash equilibrium and centralized framework

Abstract

Due to the rising consumer concern and business responsibilities towards the environment, a closed-loop supply chain with a green design is considered. Reverse logistics and return policies are receiving more attention due to increasing consumer concerns and corporate responsibility toward the environment. Hence, this article presents a sustainable supply chain model for waste reduction incorporating reverse logistics operations. A suitable return policy is discussed here for deteriorating items, incorporating an eco-design framework. Since carbon emissions are a major environmental issue, a penalty tax for polluting is introduced to reduce carbon emissions. This model considers the cost of carbon emissions due to transportation, storage, production, landfilling, building construction, power supply, and loading/unloading. Unlike previous studies, this study investigates and compares three optimization techniques based on cooperative and non-cooperative associations. The mathematical formulation has been provided with different lemmas, theorems, and algorithms. By investigating end-of-life policies, it is shown that reused products can result in more profits for a company. A product usually becomes useless and non-recoverable after four uses. However, the product's reusability can be increased by investing more in the design stage of the item.