A Sustainable Two-Echelon Logistics Model with Shipment Consolidation

Noha A. Mostafa () and Omar Eldebaiky
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Noha A. Mostafa: Mechanical Engineering Department, The British University in Egypt, El Sherouk City 11837, Egypt
Omar Eldebaiky: Mechanical Engineering Department, The British University in Egypt, El Sherouk City 11837, Egypt

Logistics, 2023, vol. 7, issue 1, 1-14

Abstract: Background : Shipment consolidation is a concept in logistics management in which two or more shipments are transported by using the same vehicle with the aim of using less resources. Methods : The objective of this manuscript is to study shipment consolidation and assess its impact on cost environment, to achieve this, a mathematical model was developed to optimize shipment consolidation while reducing the emissions and minimizing the costs. Results : A case study from major dairy products manufacturers in Egypt was used to validate the model and evaluate the outcomes. A comparison was made between two transportation models, with and without consolidation. Results show that shipment consolidation reduced the total costs by 40% in addition to consuming less fuel, and consequently producing less emissions. Conclusions : These findings emphasize the importance of shipment consolidation and how it can be used to achieve more sustainability in logistics management.

Keywords: shipment consolidation; transportation model; sustainability; mid-income countries; dairy supply chain (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2023
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