The Multi-Plant Production Routing Problem with Simultaneous Delivery and Pickup and Recycling, under Carbon Cap & Trade

Abstract

The Production Routing Problem with Simultaneous Delivery and Pickup (PRPSDP) is an integrated supply chain planning model which considers production, inventory, distribution, and routing decisions simultaneously, and which is tackled in a Reverse Logistics context. In this paper, we study the multiple plants version of the PRPSDP with integrating recycling activities. We describe the problem and illustrate it through a network flow representation, and then we aim to provide a mathematical modeling that optimizes available supply chain resources and in which we add carbon Cap-and-Trade emissions mechanism at an overall goal of minimizing total operational cost of the system.