Research on Optimization of Closed Loop Supply Chain Integrated Model Based on Low Carbon

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1 967 A publcaton of CHEMICAL ENGINEERING TRANSACTIONS VOL. 51, 2016 Guest Edtos: Tchun Wang, Hongyang Zhang, Le Tan Copyght 2016, AIDIC Sevz S..l., ISBN ; ISSN The Italan Assocaton of Chemcal Engneeng Onlne at DOI: /CET Reseach on Optzaton of Closed Loop Supply Chan Integated Model Based on Low Cabon Xngyou Zheng a*, Pngpng Zhu b, Sjng Chen b a School of Management, Fudan Unvesty, Shangha 20033, Chna b School of Management, Shangha Unvesty of Engneeng Scence, Shangha , Chna zheng3789@sna.com Wth the development of the global economy, the emsson of cabon doxde and othe geenhouse gases ae gettng lage and lage, whch bngs moe and moe seous envonmental poblems to natue that aleady has geat pessue. The tadtonal entepse development usually takes the cost mnzaton and the poft maxzaton as the entepse management goal, at the expense of the envonment. It s necessay to establsh an optzed low cabon logstcs closed loop supply chan ntegaton model, whch s chaactezed by the small amount of cabon emssons, the closed loop supply chan and the ntegaton. Ths pape has dscussed n detal of all sectos of the closed loop supply chan logstcs cost stuctue, gvng a closed loop supply chan logstcs ntegated optzaton model, and though the example analyss, gettng the esult that the ntegated management of the closed loop supply chan logstcs can be plemented to educe cabon emssons and add supply chan value and pove copoate pofts whch s an effectve method to enhance the compettveness of entepses. 1. Intoducton Moe and moe scholas began to put fowad the theoy of low cabon logstcs, the logstcs of closed-loop supply chan management, logstcs ntegaton and so on. Exstng eseach has the followng shotcomngs: evaluaton ndex aely take the tansfomaton of low cabon development fo logstcs sevce povde selecton nto account, unde the backgound of low cabon economy, copoate cabon emssons and the entepse economc effcency ae closely elated. Da Dng n the logstcs and low-cabon economy has put fowad, the logstcs fo the development of low-cabon economy s of geat sgnfcance, on the one hand, because the logstcs tself s one of the majo enegy consumpton, cabon emssons s elatvely lage. Pofesso Yang Zhyong studed how to pove the ntegated supply chan management wth the help of the theoy of logstcs level, and though the closed-loop supply chan management to pomote the development of low cabon logstcs (Yang et al., 201; Lu, 2011). Lu Yje nvestgated and analyzed the domestc and foegn eseach pesent stuaton and exstng poblems, ntoduced the concept and chaactestcs of geen supply chan on the bass of geen supply and cost ecovey concept. Pevous studes have ndcated that long-tem stategc coopeaton needs to be based on the effcency of the sustanable development of the ablty to ensue (Schultmann, 2005). C.W.Dong and so on have studed how to ntegate the ssue of the geen supply chan n the logstcs opeaton (Dong, 2005; Lu, 201). Ths pape studes the supply chan ntegaton optzaton model of low cabon logstcs system, whch s based on the ntegated opeatonal envonment, the cost and poft as the vaable, and dscusses the optzaton model of poft maxzaton of logstcs system. 2. Integated modellng of closed loop logstcs system 2.1 The nventoy constants condtons of closed loop ntegated logstcs system The elatonshp among nput and output logstcs and the coespondng stoage capacty s defned by the nventoy constant. Please cte ths atcle as: Zheng X.Y., Zhu P.P., Chen S.J., 2016, Reseach on optzaton of closed loop supply chan ntegated model based on low cabon, Chemcal Engneeng Tansactons, 51, DOI: /CET

2 968 Supples, wholesales and etales nventoy constants 0 Q ( t) = Q ( t 1) + Q ( t) Q ( t) a (, t) (1) InvRaw IRaw Raw Raw IRaw 1 2, 2 m m Raw mateal supple nventoy changes ove te, at a cetan te t the amount of ts aw mateals s equal to the amount of the nventoy n the t-1 te plus the new enty amount of aw mateals n the t te mnus the output amount of aw mateals n the t te, the constant condton s that the nventoy should be less than the supple's nventoy capacty a. Poduces and epoducton busnessman nventoy constants 2 2 M M M m m, m m m m m (2) = 1 = 1 0 Q ( t ) = Q ( t 1 ) + Q ( t ) y Q ( t ) a (, t ) Slaly to the aw mateal supples, the manufactue's nventoy s also a functon of te, ncludng the nventoy of aw mateals, ecoveed poducts and ecycled poducts; In addton, the logstcs of dynamc ntemedate change when the aw mateals change nto the poduct should also be consdeed, ts coeffcent s y t, the constant condton s that the nventoy should be less than the manufactue's nventoy capacty a. 2.2 Integated modellng of closed loop logstcs system Assumng Z s the multple objectve functon of ths ntegated logstcs system, ndcatng the total poft of logstcs system, whch contans two sub objectves, namely to maxze fowad poducton logstcs net poft (NPm), and to maxze evese logstcs net poft(np). Takng nto account the actual effcency of each of the two sub objectves, set the weght of two sub goals wee Wm and W, as well as the loss dung logstcs tanspot pocess, whch s set Loss. As a esult, the closed loop ntegated logstcs model can be expessed as: Objectve Functon max Z = Wm NPm + W NP LOSS (3) Satsfyng the constant condtons: 0 Q ( t) a (, t) () ( ) ( ) 0 j 5, 2 j 5 c c j = c c D c t = Q t t (5) ( ) 3 ( ) 5 l, δ ( ) 0 j = 1 5 l R t = Q t = D c t t (6) whee NPm=TotalPm-TotalCm=TotalPm-(RMCm+ManufCm+InvCm+TanCm+RecyCm) (7) NP=TotalP-TotalC= TotalP-(CollC+TeatC+InvC+TanC+DspC) (8) That s, fowad logstcs and evese logstcs pofts ae equal to the espectve total evenue (TotalP) mnus the espectve total cost (TotalC). And the total poft Z s equal to the fowad logstcs total poft addng evese logstcs total poft, and mnus some necessay loss, such as wea tems n the pocess of logstcs tanspotaton, the coespondng oppotunty cost caused by te dffeence and so on. In the constant condtons, Q (t) s the nventoy and t changes wth te t changes, the constant s that the nventoy s geate than the nventoy capacty. Demand constant (Dc) s also a te functon, whch efes to the elatonshp between the demand of the fnal custome and the logstcs whch manly efes to the logstcs between the poduct and the custome. R (T) s the evese logstcs pocess constants. 3. Poft and cost analyss of closed loop logstcs ntegated system 3.1 Logstcs poft analyss of closed loop supply chan management (TotalPm analyss) Integated logstcs goss poft s the sum total of the fowad logstcs and evese logstcs, set to TotalPm, the poft of the fowad logstcs s the sum of the pofts geneated by the flow of aw mateal logstcs and poduct logstcs.

3 T otalp m = { [ p ( t) Q ( t)] + [ p ( t) Q ( t)]} + 3 5,,,, j l j l m m m m m m m m t j = 1 l = m m m m 3 3 { [ P ( t) Q ( t)] + [ p ( t) Q ( t)] 5 5,, 1, 1, l l l l m m m m t l = 1 l = l m m 3 [ p j j+ 1 ( t) Q j j ,,,, 2 m j = 2 j j+ 1 2 m + ( t)] p ( t) Q ( t)} (9) 3.2 Logstcs cost analyss of closed loop supply chan management (TotalCm analyss) Integated logstcs system cost can be dvded nto vaous aspects of logstcs cost lke logstcs and tanspotaton costs of each lnk, logstcs management costs, and nfomaton management costs accodng to the functon of logstcs actvtes. Costs of each lnk nclude aw mateals costs (RMCm), poducton costs (ManufCm), nventoy costs (InvCm), tanspotaton costs(tancm), etun costs (RecyCm), etc. Logstcs management costs nclude labo costs, plannng, coodnaton and management costs, etc. Infomaton management costs nclude ode pocessng costs, custome sevce costs, etc. The aw mateal pocuement costs (RMCm) Raw mateals used n the poducton pocess nclude two knds, one s aw mateals needed to be pocessed, one s no need to pocess o exstng aw mateals. Theefoe, aw mateal pocuement costs nclude thee aspects, namely the cost of the aw mateal tself, costs pad by buyng aw mateals (one hand and second hand aw mateal odeng pocess) and the exstng aw mateal cost. In vew of the ole of the logstcs entepse of each node has the dvesty that s the manufactues o selles also can be supples, and vce vesa, theefoe, manufactues, wholesales and etales ae lkely to have a cetan amount of aw mateals. The unt cost of each lnk of the aw mateal puchase cost s C, the puchase quantty s Q, Fo manufactues (demand busnessman) and j supples (ncludng one hand and second hand aw mateal supples), aw mateal pocuement costs ae: 2 3 aw aw M SecM M [ ] jm jm jm jm jm jm j j = 1 j = + 1 j m m m m m m (10) R M C m = C Q + C Q + C Q + C Q The poducton cost of poduct (ManufCm) The poducton can be decomposed nto the opeaton cente, opeatng costs ae dstbuted accodng to the amount of wok consumed by the poducts and calculate the opeatng cost of the poducts, ncludng dect mateal costs (ncludng poduct mateals and packagng mateals), labo costs (poducton, packagng), and ndect costs of poducton (such as mateal handlng, poducton pepaaton, equpment mantenance, etc.). Mateals and labo costs can be dectly ncluded n the cost of poduct, the ndect costs can be sepaately to the wok cost, then the cost of each job s assgned to the poduct cost accodng to the coespondng wok eason. Fnally, accodng to the dect mateal costs, dect labo costs and ndect costs of poducton, the unt cost C s calculated, so poduce poducts of Q numbe, the poducton cost s: ManufCm manuf manuf C Q m (11) = Inventoy cost Assumng the unt nventoy cost s C, nventoy Q s decson vaable, the captal nteest occuped by aw mateals and nventoy s B, then the cost of aw mateals nventoy s the sum of aw mateals nventoy costs of all supples and manufactues, the cost of fnshed goods nventoy s the sum of the nventoy costs of all manufactues, wholesales and etales, The nteest occuped by the stock s the sum of the nteest of all knds of stock: InvC m InvR InvR Inv P Inv P C Q C Q B jm jm jm jm jm = 1 j = 1 j = 1 j m m m (12) = + + The tanspotaton cost (TanCm) The poduct tanspotaton cost s the sum of the tanspotaton costs fom the manufactue to the wholesale cente o to the etale, and the tanspotaton cost fom the wholesale cente to the etale. The owne of cago cost s the costs of handlng, loadng and unloadng. Assumng the unt tanspotaton cost s C, the tanspotaton quantty s Q, l s the tanspotaton way, aw mateal supples, manufactues, wholesales and etales of all nodes (, j) ae many-many elatonshps, the owne of cago cost s H, the aw mateal supples, manufactues, wholesales and etales of all nodes ae elated to the the owne of cago cost, then the total tanspotaton cost s: 3 TanRaw TanP C Q C jl Q jl H lm lm j m l = 1 j = + 1 j l = 1 j m m m m m (13) TanCm = [ ] + [ ] +

4 970 Retun cost (RecyCm) Wth the populaty of custome centc busness stategy, the etun ate n logstcs sales actvtes s contnung to se, the aveage etun ate s about 6%, netwok sales can up to 35% the etun ate. Theefoe, the etun of goods also makes a cetan cost, the cost s the poduct of the unt cost of poduct quantty and etun ecovey opeaton: RecyCm ecy manuf C Q (1) =. Optzatonal closed loop ntegated logstcs system model.1 The constant condtons of the optzaton of closed loop ntegated logstcs system The ecyclng staton nventoy constants Thee ae two types of nventoy, that s, the unteated and teated ecyclables nventoy, t s the nventoy at t-1 plus the nput nventoy at t, and mnus the amount of output fom the unteated ecyclables to the teated ecyclables and the amount of output fom the teated ecyclables to the next lnk (such as the epoducton factoes) at t, then the nventoy constant fo the ecyclng staton s: 2 2 InvC InvC InvC j j, j = 1 j = 1 (15) 0 Q ( t) = Q ( t 1) + Q ( t) Q ( t) a (, t) Dsmantlng factoes nventoy constant In the waste dsmantlng factoes, the teatment of ecyclng s dvded nto two categoes, one knd s enewable and eusable ecyclables, anothe knd s the fnal waste. Two tems need to be stoed sepaately, theefoe, thee ae thee types of nventoy n the dsmantlng factoes, that s, unteated ecyclables nventoy, the ecyclables nventoy whch has been classfed and can be eused, and the fnal waste nventoy whch has been dsassembled and can t be eused. The state tanston coeffcent of these thee types of ecyclables s y, and the dsmantlng factoes nventoy constant satsfes: 2 2 M j j = 1 j = 1 (16) 0 Q ( t ) = Q ( t 1) + y Q ( t ) + Q ( t ) Q ( t ) a (, t ) The fnal waste teatment factoes nventoy constants Along wth the development of socety, sold waste s nceasng, many countes have enacted a sees of elevant laws and egulatons to deal wth t. Dffeent waste eques dffeent fnal teatment to contol destucton that waste bngs to the envonment. The nventoy constant fo ths type of waste s: 0 InvW ast InvW ast fna InvW ast Q ( t ) = Q ( t 1) + ( ) ( ) ( Q t Q t a, t ) (17) m.2 Optzaton of closed loop logstcs system model establshment and soluton In the establshed optzaton model of logstcs system, we can consde a system of closed-loop supply chan composed of a manufactue and a etale, manufactue poducts though dect and ndect channel sales, and by the manufactue fo ecyclng, eclang etales and thd-paty ecovey one of the thee channels fo ecyclng of waste mateals ecyclng and e-manufactung. In ths optzatonal ntegated model, the manufactue and etale's game ode s as follows: 1the manufactue fst decdes wholesale pce ω, sales pce of dect sales channel Pd and the ecovey pce of waste poducts Pc; 2Accodng to the establshed pce of the manufactue, the etale wll decde ts own etal pce P. Accodng to the eseach hypothess, the optzaton poblem of ths model can be expessed as: Also set up Z as a mult objectve functon of the ntegated logstcs system, epesentng the total poft of the optzed logstcs system, whch contans two sub objectves, that s to maxze net poft (NPm) of fowad poducton logstcs, and to maxze the net poft of evese logstcs (NP). Takng nto account the actual effcency of each of the two sub objectves, set the weght of two sub goals wee Wm and W, as well as the loss dung the logstcs tanspotaton pocess, set to Loss. But the new logstcs system consdes the thd paty ecovey, set the net poft of thd paty ecovey s NPe, the weght s We, fom ths, the closed loop ntegated logstcs model can be expessed as: Objectve Functon max Z = Wm NPm + W NP + We NPe LOSS (18) Satsfy the constant condtons: 0 Q ( t ) a (, t ) (19)

5 971 (20) Dc( t) = Q ( t) 0 t j = 2 j 5 c c j 5 c, c 3 R ( t) = Q ( t) = δ D c( t) 0 t (21) j = 1 5 l 5 l, The optzed model satsfes the ognal constant, and t also needs to satsfy the maxzaton poft of the ecycle sde, maxzaton model of the ecyclng sde net poft NPe s as follows: max NPe = ( ω Cm) D + ( Pd Cm) Dd + ( Δ Pc C1) S( Pc) (22) s. t. NPe 0 (23) 0 Pc Pd (2) Pc + C1 Δ (25).3 Total poft and total cost analyss of the optzatonal closed loop ntegated logstcs system model Entepses n the logstcs pocess, plement closed-loop ntegated management on the fowad logstcs and evese logstcs whch not only ncease the sense of envonmental potecton, at the same te, entepses also eceve a eal poft that s the goal of sustanable development of moden logstcs. Accodngly, the closed-loop logstcs cost afte optzng has also nceased the ecyclng paty cost, ncludng waste collecton costs (CollC), ecycled mateals nventoy cost(invc), dsmantlng, pocessng and pocessng costs (TeatC) and fnal waste dsposal costs (DspC). The waste collecton costs (CollC) The collecton costs manly efe to the costs geneated by collectng goods whch wll no longe have the value fom uses and placng them n ecyclng factoes and othe pocess of ecyclng actvtes, waste collects fom the use, ncludng N collecton pocess (use collecton, ecyclng staton collecton, ecyclng dsposal factoy demolton, sotng o seconday maket fo epackagng, etc.), assumng the unt collecton cost s C, the collecton quantty s Q, then the cost of the waste collecton pocess s: coll CollC = C j Q j (26) j= 1 Recyclables nventoy costs The ecyclables nventoy costs nclude unteated ecyclables nventoy cost, the cost of teated ecyclables whch has to be stoed n the ecyclng factoes (dsmantlng, sotng, etc.), the nventoy cost of epoducton factoy and a second-hand maket and funds nteest occuped by ecyclables of all lnks of ecyclng. Assumng the unt nventoy cost s C, the nventoy s Q, the ecyclables s, the nteest s B, then the ecyclables cost s: In vc 3 C InvR InvR Inv P Inv P Q C Q B j j j j j j = 1 j = 1 j = 1 = + + (27) TanC n m a n m a Tan Tan C Q ljx ljx H ljx (28) l = 1 j = 1 x = 1 l = 1 j = 1 x = 1 = + The dsmantlng teatng cost The teatment cost s the cost poduced n the pocess of dsmantlng, epoducton and euse. The pocess ncludes the collecton, dsmantlng, nventoy, tanspotaton and othe lnks, each lnk elates to ecyclables teatment. Assumng the unt pocessng cost s C, the teatment quantty s Q, the ecyclables s, then the cost of evese logstcs pocess s: teat teat TeatC = C Q j j (29) j= 1 The fnal waste dsposal costs (DspC) The cost of ts dsposal usually depends on the numbe and the dffculty of the dsposal. The dffculty of dsposal efes to the dffculty of methods and technques fo the use of waste dsposal, dffeent dffculty have dffeent dsposal cost. Assumng the waste s, unt pocessng cost s C, the teatment quantty s Q, thee s:

6 972 DspC = C Q waste waste (30). Pedcton of taget value added n logstcs ndusty afte closed loop optzaton By lookng at the Chna logstcs and Puchasng Assocaton publshed data and the calenda yea logstcs statstcal yeabook data fnshng 200~2012 Chna s logstcs value added, as shown n table 1. Table 1: The added value of logstcs ndusty n Chna n yea Added value of logstcs ndusty (100 mllon yuan) Yea-on-yea gowth (%) GM (1,1) model was establshed by usng Matlab softwae, and the gey pedcton was caed out. The gey foecastng model s: F(t+1)= *exp(0.13*t) (31) 5. Conclusons Ths pape makes a detaled analyss of the cost and poft of the fowad logstcs and evese logstcs n each lnk nvolved n the poduct lfe cycle, and gves the opeaton of the ntegated optzaton model on the bass of the ognal. Though the analyss of the poft and cost of optzed model system, we see, the ntegated logstcs management s an effectve way to ealze savng esouces, envonmental potecton and pove entepse effcency; t s helpful fo entepses to gan compettve advantage. Acknowledgments The authos thank the edto and evewes fo the nsghtful comments and suggestons. Ths wok s fnancally suppoted by suppoted by the Chna Scholashp Councl ( ), Suppoted by Innovaton Pogam of Shangha Muncpal Educaton Commsson (13ZS129), and Fundamental Reseach Funds fo the Cental Unvestes (CUSF-DH-D ), Shangha Unvesty Teache Tanng Pogam (ZZGCD1501) and Ph.D. Pogams Foundaton of Shangha Unvesty of Engneeng Scence (2015). Refeence Da D., 2008, Logstcs and low cabon economy, Chna logstcs and puchasng, 21:2-25,DOI: /j.cnk.ssn Debabata D., Pankaj D., 2015, Desgn and analyss of a closed-loop supply chan n pesence of pomotonal offe, Intenatonal Jounal of Poducton Reseach, 531. Dong C.W., Shen B., Chow P.S., Yang L., 201, Sustanablty nvestment unde cap-and-tade egulaton, Annals of Opeatons Reseach. DOI: /s Lu J., Mao H.J., Hu S.T., 201, Closed-loop supply chan logstcs netwok optzaton model and algothm of unde the the electonc commece, Logstcs Technology, 15: Schultmann F., Zumkelle M., Rentz O., 2005, Modellng evese logstc tasks wthn closed-loop supply chans, Euopean Jounal of Opeatonal Reseach, 3:1-18. Xng H.W., Xun Y., S H.L., 2015, Low cabon logstcs sevce povde selecton GST-ANP model, Scence and Technology Management eseach,20: Yang Z.Y., Wang H.Y., La D. Z., L B.L.,201, Optzaton of supply chan ntegaton management unde the fouth paty logstcs opeaton mode, Value Engneeng,03:25-28,DOI: /j.cnk.cn /n

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