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Design and planning for green global supply chains under periodic review replenishment policies

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  • Mallidis, Ioannis
  • Vlachos, Dimitrios
  • Iakovou, Eleftherios
  • Dekker, Rommert

Abstract

We quantify the impact of jointly optimizing strategic network design and tactical inventory planning on the cost and CO2 emissions of multi-echelon logistics networks. The obtained insights indicate that longer optimized replenishment cycles reduce a node’s transportation cost and CO2 emissions but increase its inventory costs. Moreover, under a fixed replenishment cycle, a node’s service level increases when supplied by a satellite warehouse. Finally: (i) the costs of implementing optimal green network design decisions could be misleading if inventory planning is neglected, (ii) greening of supply chains could become expensive, (iii) current legislative CO2 ton prices hardly influence logistics networks.

Suggested Citation

  • Mallidis, Ioannis & Vlachos, Dimitrios & Iakovou, Eleftherios & Dekker, Rommert, 2014. "Design and planning for green global supply chains under periodic review replenishment policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 210-235.
    • Handle: RePEc:eee:transe:v:72:y:2014:i:c:p:210-235
    DOI: 10.1016/j.tre.2014.10.008
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    4. Piera Centobelli & Roberto Cerchione & Emilio Esposito, 2018. "Environmental Sustainability and Energy-Efficient Supply Chain Management: A Review of Research Trends and Proposed Guidelines," Energies, MDPI, vol. 11(2), pages 1-36, January.
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    7. Behnam Vahdani & Elham Ahmadzadeh, 2021. "Incorporating Price-Dependent Demands into a Multi-Echelon Closed-Loop Network Considering the Lost Sales and Backorders: a Case Study of Wireless Network," Networks and Spatial Economics, Springer, vol. 21(3), pages 639-680, September.
    8. Dehghani, Ehsan & Jabalameli, Mohammad Saeed & Jabbarzadeh, Armin, 2018. "Robust design and optimization of solar photovoltaic supply chain in an uncertain environment," Energy, Elsevier, vol. 142(C), pages 139-156.
    9. M. Turkensteen (Marcel) & van den Heuvel, W., 2019. "The trade-off between costs and carbon emissions from lot-sizing decisions," Econometric Institute Research Papers EI2019-19, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    10. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
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    12. Konur, Dinçer & Campbell, James F. & Monfared, Sepideh A., 2017. "Economic and environmental considerations in a stochastic inventory control model with order splitting under different delivery schedules among suppliers," Omega, Elsevier, vol. 71(C), pages 46-65.

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