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Supply chain management (SCM) focuses smart logistics and quality service. Diverse elements such as design, procurement, production and sale policies are the keys to SCM efficiency. Due to worsening environmental pollution in recent years, many businesses, government agencies and consumers have become more aware of greenhouse gases (GHG) emissions. In response, the government has established new environmental regulations to control various GHG, such as CO₂ and sulfur dioxide. Therefore, to reduce pollution and its adverse effects, the authors have promoted environmental concerns by developing environmental friendly policies. The purpose of this paper is to develop a multi-objective decision making model that integrates both forward and reverse logistics to determine how best to incorporate recycling and reduce manufacturing costs.

In this study, the authors developed a multi-objective decision-making model that integrates both forward and reverse logistics to determine how best to incorporate recycling and reduce manufacturing costs. They used the normalized normal constraint method as proposed by Messac et al. (2003) to generate a series of uniform lines on a Pareto Frontier chart.

Based on the results of this study, the authors can determine the trade-off between costs and emissions and design the most environmental-friendly and economical strategy for production.

This study is limited to a case study on paper manufacturing.

The authors considered the full truckload discount policy in which buyers can reduce their purchase costs by increasing the number of full truckload product orders; this will reduce transportation costs and also minimize overall carbon emissions.

This study encourages industries to focus on environmental friend policies and social responsibilities.

The authors investigated the impacts of the paper making industry on economy and environment. An increase in demand will negatively impact the environment by causing CO₂ emissions to increase from higher production and the felling of more trees to provide raw materials for manufacturers (paper mills).