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Transportation Costs and Carbon Emissions in a Vendor Managed Inventory Situation

Marcel Turkensteen () and Christian Larsen ()
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Marcel Turkensteen: Aarhus University
Christian Larsen: Aarhus University

A chapter in Operations Research Proceedings 2013, 2014, pp 459-464 from Springer

Abstract: Abstract Recently, there has been much focus on carbon emissions and fuel consumption from road transport. In this paper, we consider a vendor deciding on the degree to which deliveries to geographically dispersed retailers should be consolidated. The vendor can consolidate shipments over time and deliver infrequently or deliver to many retailers simultaneously. We adapt models for determining the vendor’s cost minimizing strategy and for computing emissions. We find that if the per km transportation costs increase, the vendor mainly selects smaller zones to avoid transportation, resulting in lower carbon emissions.

Keywords: Carbon Emission; Transportation Cost; Inventory Level; Vendor Manage Inventory; Vehicle Utilization (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:oprchp:978-3-319-07001-8_62

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DOI: 10.1007/978-3-319-07001-8_62

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