Socially responsible transportation and lot sizing : insights from multiobjective optimization

Y. Bouchery, A. Ghaffari, Z. Jemai, J.C. Fransoo

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This paper applies multiobjective optimization to show how the efficient tradeoffs between cost and carbon emissions may be obtained in the context of socially responsible operations. We thus formulate a model where transportation mode selection and lot sizing decisions are considered jointly. We derive structural properties of the model and develop several insights that remain hidden under single-objective optimization. First, we show that switching to a socially responsible 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. Two classical ways of taking carbon emissions into account in the decision making process are also compared and the results are illustrated through an example of a French retailer.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages33
Publication statusPublished - 2013

Publication series

NameBETA publicatie : working papers
ISSN (Print)1386-9213


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