Sustainable transportation and order quantity: insights from multiobjective optimization |
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Authors: | Email author" target="_blank">Yann?BoucheryEmail author Asma?Ghaffari Zied?Jemai Jan?Fransoo |
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Institution: | 1.Ecole de Management de Normandie,Axe Logistique Terre Mer Risque,Le Havre,France;2.Laboratoire Génie Industriel,Ecole Centrale Paris,Chatenay-Malabry,France;3.OASIS-ENIT,University of Tunis El Manar,Tunis,Tunisia;4.School of Industrial Engineering,Eindhoven University of Technology,Eindhoven,The Netherlands |
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Abstract: | 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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