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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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    14. Malladi, Krishna Teja & Sowlati, Taraneh, 2020. "Bi-objective optimization of biomass supply chains considering carbon pricing policies," Applied Energy, Elsevier, vol. 264(C).
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    18. Micheli, Guido J.L. & Mantella, Fabio, 2018. "Modelling an environmentally-extended inventory routing problem with demand uncertainty and a heterogeneous fleet under carbon control policies," International Journal of Production Economics, Elsevier, vol. 204(C), pages 316-327.
    19. 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.
    20. Misagh Rahbari & Alireza Arshadi Khamseh & Yaser Sadati-Keneti & Mohammad Javad Jafari, 2022. "A risk-based green location-inventory-routing problem for hazardous materials: NSGA II, MOSA, and multi-objective black widow optimization," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2804-2840, February.
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    22. Felix Prause & Gunnar Prause & Robert Philipp, 2022. "Inventory Routing for Ammonia Supply in German Ports," Energies, MDPI, vol. 15(17), pages 1-22, September.
    23. Lixia Li & Yu Yang & Gaoyuan Qin, 2019. "Optimization of Integrated Inventory Routing Problem for Cold Chain Logistics Considering Carbon Footprint and Carbon Regulations," Sustainability, MDPI, vol. 11(17), pages 1-22, August.

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