A system dynamics model for green logistics in a supply chain of multiple suppliers, retailers and markets

Abbas Al-Refaie and Dua'a Younes Abdelrahim

International Journal of Business Performance and Supply Chain Modelling, 2021, vol. 12, issue 3, 259-281

Abstract: This paper aims at developing a system dynamics (SD) model to analyse the effect of green transportation and logistics on the total transportation cost of forward supply chain (FSC) and the total amount of CO₂ emissions. The proposed green forward supply chain (GFSC) model considers multi-suppliers, retailers and markets, two types of suppliers (quick response and slow response), a single manufacturer, three retailers, and three markets. Based on SD model, the performance of GFSC was measured by CO₂ emissions and total transportation costs for two transportation modes; regular (fuel) and hybrid trucks. Based on simulation results, the retailer that contributed to largest transportation costs and CO₂ emissions was identified. Alternative green transport scenarios were proposed and then evaluated. Furthermore, a comparison between the performance of existing and suggested scenarios was conducted. Finally, sensitivity analysis was conducted to assess the impacts of model variables; CO₂ factor and fuel consumption. The results showed that the use of regular trucks resulted in large transportation costs and CO₂ emissions in FSC. In conclusion, planning engineers can utilise the proposed GFSC model in determining transport solutions that achieve green logistics system, cost-efficient supplier selection, and measuring performance of GFSC.

Keywords: green logistics; system dynamics; multiple retailers; CO 2 emission. (search for similar items in EconPapers)
Date: 2021
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