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A methodology for assessing eco-efficiency in logistics networks

Author

Listed:
  • Quariguasi Frota Neto, J.
  • Walther, G.
  • Bloemhof, J.
  • van Nunen, J.A.E.E.
  • Spengler, T.

Abstract

Recent literature on sustainable logistics networks points to two important questions: (i) How to spot the preferred solution(s) balancing environmental and business concerns? (ii) How to improve the understanding of the trade-offs between these two dimensions? We posit that a visual exploration of the efficient frontier and trade-offs between profitability and environmental impacts are particularly suitable to answer these two questions. The visual representation of the efficient frontier, however, presents two challenges. The first is to obtain a good approximation for such frontier without enumerating all extreme efficient solutions. The second is to obtain a good visual representation of the efficient frontier. We propose a two-phased heuristic to handle these two problems. The algorithm is designed for the multi-objective linear problem with three objectives: minimize costs, cumulative energy demand and waste in a reverse logistics network. We illustrate our approach by designing a complex recycling logistics network in Germany.

Suggested Citation

  • Quariguasi Frota Neto, J. & Walther, G. & Bloemhof, J. & van Nunen, J.A.E.E. & Spengler, T., 2009. "A methodology for assessing eco-efficiency in logistics networks," European Journal of Operational Research, Elsevier, vol. 193(3), pages 670-682, March.
    • Handle: RePEc:eee:ejores:v:193:y:2009:i:3:p:670-682
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    More about this item

    Keywords

    Eco-efficiency Sustainable supply chains Closed-loop supply chains Multi-objective programming Optimization;

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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