Network planning and operation of sustainable closed-loop supply chains in emerging markets: Retail market configurations and carbon policies

This paper studies an integrated network planning and operation problem of sustainable closed-loop supply chain (CLSC) under demand uncertainty with particularly interest in the configuration of retail network. The problem is modeled as a two-stage stochastic program which is further extended to evaluate the impact of various carbon polices on planning and operation decisions of the CLSC. A branch and bound based integer L-shaped algorithm has been proposed to solve these models. Extensive numerical experiments are conducted and impacts of carbon policies are analyzed. Sensitivity analysis is carried out and several managerial insights are drawn.