Sustainable transportation and order quantity: insights from multiobjective optimization

Y Bouchery (), Asma Ghaffari (), Zied Jemai () and Jan C Fransoo ()
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Y Bouchery: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Asma Ghaffari: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Zied Jemai: ENIT - Ecole Nationale d'Ingénieurs de Tunis - UTM - Tunis El Manar University [University of Tunis El Manar] [Tunisia] = Université de Tunis El Manar [Tunisie] = جامعة تونس المنار (ar)

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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. 2

Date: 2016-09
Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-01954465v1
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Citations: View citations in EconPapers (4)

Published in Flexible Services and Manufacturing Journal, 2016, 28 (3), pp.367-396. ⟨10.1007/s10696-016-9240-z⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01954465

DOI: 10.1007/s10696-016-9240-z

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