Sustainable transportation and order quantity: insights from multiobjective optimization

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

Research output: Contribution to journalArticleAcademicpeer-review

9 Citations (Scopus)
253 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)367-396
Number of pages30
JournalFlexible Services and Manufacturing Journal
Volume28
Issue number3
DOIs
Publication statusPublished - 25 Mar 2016

Keywords

  • Sustainable supply chain management
  • Multiobjective optimization
  • Transportation mode selection
  • Order quantity optimization

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