Sustainable transportation and order quantity: insights from multiobjective optimization

Yann Bouchery (), Asma Ghaffari, Zied Jemai and Jan Fransoo
Additional contact information
Yann Bouchery: Axe Logistique Terre Mer Risque
Asma Ghaffari: Ecole Centrale Paris
Zied Jemai: Ecole Centrale Paris
Jan Fransoo: Eindhoven University of Technology

Flexible Services and Manufacturing Journal, 2016, vol. 28, issue 3, No 1, 367-396

Abstract: Abstract This article applies multiobjective optimization to show how the tradeoffs between cost and carbon emissions may be obtained in the context of sustainable operations. We formulate a model where transportation mode selection and order quantity decisions are considered jointly. We derive structural properties of the model and develop several insights. First, we show that switching to a greener mode of transportation while continuing to optimize the total logistics costs function may lead to a dominated solution. Second, we prove that the modal shift occurs only under strong carbon emissions reduction requirements. Third, we show that the efficient frontier is non-convex and we analyze some implications. Finally, we analyze the impacts of an increase in truck capacity. The results are illustrated through an example of a French retailer.

Keywords: Sustainable supply chain management; Multiobjective optimization; Transportation mode selection; Order quantity optimization (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10696-016-9240-z

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