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Multi-period inventory routing problem under carbon emission regulations

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  • Cheng, Chun
  • Qi, Mingyao
  • Wang, Xingyi
  • Zhang, Ying

Abstract

This paper analyzes the impacts of carbon emission regulations on the traditional inventory routing problem (IRP). We first present the traditional IRP model, which is an inbound commodity collection system consisting of one assembly plant and a set of geographically dispersed suppliers. At the beginning of each period, a fleet of capacitated identical vehicles depart the depot to pick up products from suppliers to meet the assembly plant’s demand, which is deterministic and time-varying. We use fixed transportation cost, fuel consumption cost and inventory holding cost to evaluate the system’s total cost, in which fuel consumption cost is determined by fuel consumption rate, distance and fuel price. Then we investigate the impacts of carbon emission regulations on the traditional IRP problem, wherein carbon emissions are generated by fuel consumption. A series of mixed integer nonlinear programming models are constructed and linearization methods are used. A hybrid genetic algorithm based on allocation first and routing second is proposed to find near-optimal solutions for these problems. Numerical tests are performed to show the effectiveness of the proposed algorithm, and several managerial insights are observed from parameter sensitive analyses which may help both the government and the industry to adopt appropriate carbon reduction regulations.

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  • Cheng, Chun & Qi, Mingyao & Wang, Xingyi & Zhang, Ying, 2016. "Multi-period inventory routing problem under carbon emission regulations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 263-275.
    • Handle: RePEc:eee:proeco:v:182:y:2016:i:c:p:263-275
    DOI: 10.1016/j.ijpe.2016.09.001
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    9. Mirzapour Al-e-hashem, Seyed M.J. & Rekik, Yacine & Mohammadi Hoseinhajlou, Ebrahim, 2019. "A hybrid L-shaped method to solve a bi-objective stochastic transshipment-enabled inventory routing problem," International Journal of Production Economics, Elsevier, vol. 209(C), pages 381-398.
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    13. Mohammad Asghari & Seyed Mohammad Javad Mirzapour Al-E-Hashem, 2021. "Green vehicle routing problem: A state-of-the-art review," Post-Print hal-03182944, HAL.
    14. Castellano, Davide & Gallo, Mosè & Grassi, Andrea & Santillo, Liberatina C., 2019. "The effect of GHG emissions on production, inventory replenishment and routing decisions in a single vendor-multiple buyers supply chain," International Journal of Production Economics, Elsevier, vol. 218(C), pages 30-42.
    15. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2021. "Green vehicle routing problem: A state-of-the-art review," International Journal of Production Economics, Elsevier, vol. 231(C).
    16. Loske, Dominic & Klumpp, Matthias, 2021. "Human-AI collaboration in route planning: An empirical efficiency-based analysis in retail logistics," International Journal of Production Economics, Elsevier, vol. 241(C).
    17. Garside, Annisa Kesy & Ahmad, Robiah & Muhtazaruddin, Mohd Nabil Bin, 2024. "A recent review of solution approaches for green vehicle routing problem and its variants," Operations Research Perspectives, Elsevier, vol. 12(C).
    18. Javad Sadeghi & Karl R. Haapala, 2019. "Optimizing a sustainable logistics problem in a renewable energy network using a genetic algorithm," OPSEARCH, Springer;Operational Research Society of India, vol. 56(1), pages 73-90, March.
    19. Felix Prause & Gunnar Prause & Robert Philipp, 2022. "Inventory Routing for Ammonia Supply in German Ports," Energies, MDPI, vol. 15(17), pages 1-22, September.
    20. Bikash Koli Dey & Hyesung Seok & Kwanghun Chung, 2024. "Optimal Pricing and Retailing Strategy for an Assembled Product Manufacturing–Remanufacturing Process under Carbon Emission Regulations and Autonomation," Sustainability, MDPI, vol. 16(14), pages 1-27, July.
    21. Md. Anisul Islam & Yuvraj Gajpal, 2021. "Optimization of Conventional and Green Vehicles Composition under Carbon Emission Cap," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    22. Rau, Hsin & Budiman, Syarif Daniel & Widyadana, Gede Agus, 2018. "Optimization of the multi-objective green cyclical inventory routing problem using discrete multi-swarm PSO method," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 51-75.
    23. Shib Sankar Sana, 2022. "A structural mathematical model on two echelon supply chain system," Annals of Operations Research, Springer, vol. 315(2), pages 1997-2025, August.
    24. Pérez, Juan & Maldonado, Sebastián & González-Ramírez, Rosa, 2018. "Decision support for fleet allocation and contract renegotiation in contracted open-pit mine blasting operations," International Journal of Production Economics, Elsevier, vol. 204(C), pages 59-69.

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