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
Hauptverfasser: Bouchery, Yann, Ghaffari, Asma, Jemai, Zied, Fransoo, Jan
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container_title Flexible services and manufacturing journal
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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.
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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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