A branch-and-price algorithm for production routing problems with carbon cap-and-trade

Yuzhuo Qiu, Jun Qiao and Panos M. Pardalos

Omega, 2017, vol. 68, issue C, 49-61

Abstract: This study presents a model for a pollution production-routing problem under carbon cap-and-trade. The aim is to incorporate carbon emissions into production inventory and routing decisions. The model is characterized by an additional flow-related cost structure, which generalizes models for pollution-routing problems and production inventory and routing problems. Correspondingly, we develop a branch-and-price heuristic by incorporating a column-generation formulation based on the Dantzig–Wolfe decomposition. In addition, we design an ad hoc label-setting algorithm to deal with time-slice networks in pricing subproblems. Computational results allow us to provide managerial insights concerning reduction of carbon emissions in supply chains. We prove that the model has the potential to reduce emission levels of carbon dioxide and operational costs.

Keywords: Routing; Production planning; Branch and bound; Dynamic programming; Environmental studies (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:68:y:2017:i:c:p:49-61

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DOI: 10.1016/j.omega.2016.06.001

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