An Optimization Model of a Sustainable City Logistics Network Design Based on Goal Programming

Shuangyan Li, Yijing Liang, Zhenjie Wang and Dezhi Zhang
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Shuangyan Li: College of Logistics and Transportation, Central South University of Forestry and Technology, Changsha 410004, China
Yijing Liang: School of Management and Engineering, Nanjing University, Nanjing 210093, China
Zhenjie Wang: School of Traffic & Transportation Engineering, Central South University, Changsha 410075, China
Dezhi Zhang: School of Traffic & Transportation Engineering, Central South University, Changsha 410075, China

Sustainability, 2021, vol. 13, issue 13, 1-20

Abstract: This paper investigates the joint optimization problem on the logistics infrastructure investment and CO 2 emission taxes for a sustainable city logistics network design by a goal programming approach where the cost recovery, service level and CO 2 emission reduction goals are involved. The above multi-objective logistics infrastructure capacity investment and CO 2 emission taxes problem is formulated as a bi-level goal programming model. Given the priority structure of the goals, the total deviations from predetermined goals are minimized in the upper level, while the lower level of the model serves as the service route choice equilibrium problem of logistics users. To solve the proposed model, a genetic algorithm is developed, where the method of successive average (MSA) is embedded. The case study focusing on the urban logistics network of Changsha, China demonstrates the effectiveness of the bi-level goal programming model and the genetic algorithm. The findings reveal that the priority rankings of the goals have a significant impact on the joint decisions of CO 2 emission taxes and logistics infrastructure capacity investment. The proposed methodology provides an avenue to balance multiple conflicting objectives and obtain an economical and environmental city logistics network.

Keywords: bi-level goal programming model; logistics infrastructure investment; CO 2 emission taxes; logistics network design (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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