Journal of Industrial and Management Optimization, vol.21, no.5, pp.4003-4024, 2025 (SCI-Expanded, Scopus)
In this paper, a new manufacturing-remanufacturing model is formulated and solved. In the proposed model, demand is taken as sustainability level dependent. The main objective of the study is to find an optimal time between two successive deliveries, the optimal number of shipments, and the optimal sustainability level by considering profit maximization. The effect of sustainability level on manufacturing cost and remanufacturing cost is depicted. Products that are returned from the retailer at a certain quality level are remanufactured. Products have different quality rates, and based on the quality rate, products are returned to manufacturer and disposed of retailer’s end. Carbon tax is calculated based on speed of the truck, production rate, and remanufacturing rate. A mathematical model is formulated and then analyzed with the help of numerical examples based on real-life problems. Regula Falsi method and a new solution algorithm are provided to obtain optimal solution and a sensitivity analysis is performed with respect to major parameters. It is suggested that a manufacturer increases the sell of higher sustainability dependent products. A company can choose the path of distribution wisely for lowering the emission costs. For example, where traffic frequency is low, the driver can choose a route where the vehicle drives at low carbon emission speed. When the sustainable sensitive cost parameter increases, then the profit decreases. Therefore, it is suggested to keep the sustainable sensitive cost parameter as low as possible. Not only that, increase in sustainable practices helps to gain profit as well as helps to save the environment. Moreover, reducing energy and waste consumption lead to efficient and useful sources of resources. Sustainability with remanufacturing processes are aligned with circular economy principles by promoting the reuse, refurbishment, and recycling of products.