Sustainable transportation and order quantity: insights from multiobjective optimization
This article applies multiobjective optimization to show how the tradeoffs between cost and carbon emissions may be obtained in the context of sustainable operations. We formulate a model where transportation mode selection and order quantity decisions are considered jointly. We derive structural pr...
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Veröffentlicht in: | Flexible services and manufacturing journal 2016-09, Vol.28 (3), p.367-396 |
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creator | Bouchery, Yann Ghaffari, Asma Jemai, Zied Fransoo, Jan |
description | This article applies multiobjective optimization to show how the tradeoffs between cost and carbon emissions may be obtained in the context of sustainable operations. We formulate a model where transportation mode selection and order quantity decisions are considered jointly. We derive structural properties of the model and develop several insights. First, we show that switching to a greener mode of transportation while continuing to optimize the total logistics costs function may lead to a dominated solution. Second, we prove that the modal shift occurs only under strong carbon emissions reduction requirements. Third, we show that the efficient frontier is non-convex and we analyze some implications. Finally, we analyze the impacts of an increase in truck capacity. The results are illustrated through an example of a French retailer. |
doi_str_mv | 10.1007/s10696-016-9240-z |
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subjects | Business administration Carbon Emissions control Engineering Humanities and Social Sciences Impact analysis Logistics Machines Manufacturing Modal choice Multiple objective analysis Operations Management Operations Research/Decision Theory Optimization Order quantity Processes Sustainability Switching Transportation |
title | Sustainable transportation and order quantity: insights from multiobjective optimization |
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