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Sustainable transportation and order quantity: insights from multiobjective optimization

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
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Submitted on : Thursday, December 13, 2018 - 4:21:39 PM
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Y Bouchery, Asma Ghaffari, Zied Jemai, Jan C Fransoo. Sustainable transportation and order quantity: insights from multiobjective optimization. Flexible Services and Manufacturing Journal, Springer, 2016, 28 (3), pp.367-396. ⟨10.1007/s10696-016-9240-z⟩. ⟨hal-01954465⟩

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