Research Article

Optimal Decisions in the Closed-Loop Supply Chain considering Capacity Constraints and Stochastic Demand under the Cap-and-Trade Regulation

Table 1

Notations.

Model parameters

Total market volume
Market demand for products
Linear part of product market demand
Random parts of product market demand
Sensitivity factor of market demand to product price
Sensitivity factor of market demand to the level of carbon reduction
Upper limit of manufacturer’s production activity capacity
Production and manufacturing costs per unit of product
Carbon trading price per unit of product on the carbon trading market
Production costs per unit of product components
Residual value of unsold products
Sensitivity factor of product recovery volume to recovery price
Carbon reduction cost factor
Capacity investment cost factor
Supply price per unit of parts
Selling price per unit of product
Carbon emissions per unit of product produced
Government-given carbon quotas for manufacturers

Decision variables

Emission reduction levels per unit of product
Recovery price per unit of product in the market
Volume of manufacturers’ investment in production activities

Derived variables

Product recovery volume
Total product output
Total supplier profit
Total manufacturer profit
Total CLSC profit

Indexes

Represents the optimal solution in each case