Green closed-loop supply chain optimization strategy considering CER and incentive-compatibility theory under uncertainty

Abstract

<abstract> <p>Under the uncertain market demand and quality level, a total profit model of green closed-loop supply chain system (GCL-SCS) considering corporate environmental responsibility (CER) and government differential weight subsidy (GDWS) is constructed. Based on incentive-compatibility theory, the optimal subsidy allocation policy and green investment level were explored. Fuzzy chance-constrained programming (FCCP) is used to clarify the uncertainty factors of this model; while genetic algorithm (GA) and CPLEX are used to find and compare a calculating example's approximate optimal solution about this model. The main calculating results indicate that: (1) Enterprises can make optimal recycling, production and sales strategies according to different potential demand; (2) Without government subsidy, enterprises' higher green investment level will reduce their average gross profit, increase the quality level of recycled products and decrease the recycling rate, hence reduce their environmental protection willingness; (3) Based on incentive-compatibility theory, when government subsidy weight is set as 0.34~0.41 for consumers, enterprises' higher green investment level will enhance their average gross profit, reduce the quality level of recycled products and increase the recycling rate, which will improve their environmental protection willingness; (4) Under uncertain environment, the combination of reasonable government subsidy policy and enterprises green investment can make up for the defect of enterprises green investment alone, maximize utilities of government and enterprises, and optimize the green closed loop supply chain.</p> </abstract>

Remanufacturing closed-loop supply chain decision comparison under multiple carbon policies

“…Based on the competitive relationship of enterprises, Zhang et al [46] discussed the production and operation strategy of the competitive supply chain composed of two manufacturers under a carbon tax mechanism. When the market demand is random, Guo et al [47][48], and Wei et al [49] have all studied the influence of carbon tax policy on enterprises' green technology investment, production, and order decisions, their research indicated that compatible carbon tax policy will promote enterprises' emission reduction.…”

“…This assumption has been widely used, such as Guo et al [48]. Under existing technical conditions, carbon emissions of enterprises cannot be zero, that is, 0 < 𝑠 < 𝑒.…”