Sustainable manufacturing production-inventory decision of multiple factories with JIT logistics, component recovery and emission control

Based on two sustainable manufacturing strategies: resource recycling and emission reduction, this paper addresses a new production-inventory problem of multiple factories with JIT logistics, component recovery and emission control. Motivated by beer industry, we formulate this problem based on two decision mechanisms: (1) PI-CR decision mechanism-sole consideration of component recovery (component recycling) (2) PI-RE decision mechanism-joint consideration of component recycling and emission control. In the PI-RE decision mechanism, two emission control policies-carbon tax and carbon cap & trade are implemented. Numerical analysis is demonstrated to show the application of the models, and the managerial implications are put forward. Results show that emission control and resource recycling strategies have different impacts on the decision, increasing the return rate of recoverable component is an effective approach to currently reduce emissions and cost, while the cap & trade policy is more effect than the carbon tax policy in controlling emissions.