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Sustainable transportation and order quantity: insights from multiobjective optimization

Author

Listed:
  • 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 - Université de Tunis El Manar)

  • Jan C Fransoo

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

Suggested Citation

  • Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    • Handle: RePEc:hal:journl:hal-01954465
    DOI: 10.1007/s10696-016-9240-z
    Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-01954465
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    References listed on IDEAS

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    2. Vahid Reza Soleymanfar & Ahmad Makui & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2022. "Sustainable EOQ and EPQ models for a two-echelon multi-product supply chain with return policy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5317-5343, April.
    3. Aleksander Banasik & Jacqueline M. Bloemhof-Ruwaard & Argyris Kanellopoulos & G. D. H. Claassen & Jack G. A. J. Vorst, 2018. "Multi-criteria decision making approaches for green supply chains: a review," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 366-396, September.

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