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A branch-and-price algorithm for production routing problems with carbon cap-and-trade

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  • Qiu, Yuzhuo
  • Qiao, Jun
  • Pardalos, Panos M.

Abstract

This study presents a model for a pollution production-routing problem under carbon cap-and-trade. The aim is to incorporate carbon emissions into production inventory and routing decisions. The model is characterized by an additional flow-related cost structure, which generalizes models for pollution-routing problems and production inventory and routing problems. Correspondingly, we develop a branch-and-price heuristic by incorporating a column-generation formulation based on the Dantzig–Wolfe decomposition. In addition, we design an ad hoc label-setting algorithm to deal with time-slice networks in pricing subproblems. Computational results allow us to provide managerial insights concerning reduction of carbon emissions in supply chains. We prove that the model has the potential to reduce emission levels of carbon dioxide and operational costs.

Suggested Citation

  • Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2017. "A branch-and-price algorithm for production routing problems with carbon cap-and-trade," Omega, Elsevier, vol. 68(C), pages 49-61.
    • Handle: RePEc:eee:jomega:v:68:y:2017:i:c:p:49-61
    DOI: 10.1016/j.omega.2016.06.001
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    2. Cao, Erbao & Yu, Man, 2019. "The bright side of carbon emission permits on supply chain financing and performance," Omega, Elsevier, vol. 88(C), pages 24-39.
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    5. Zhitao Xu & Adel Elomri & Shaligram Pokharel & Fatih Mutlu, 2019. "The Design of Green Supply Chains under Carbon Policies: A Literature Review of Quantitative Models," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    6. Castellano, Davide & Gallo, Mosè & Grassi, Andrea & Santillo, Liberatina C., 2019. "The effect of GHG emissions on production, inventory replenishment and routing decisions in a single vendor-multiple buyers supply chain," International Journal of Production Economics, Elsevier, vol. 218(C), pages 30-42.
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    8. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2021. "Green vehicle routing problem: A state-of-the-art review," International Journal of Production Economics, Elsevier, vol. 231(C).
    9. Liang Shen & Fei Lin & T. C. E. Cheng, 2022. "Low-Carbon Transition Models of High Carbon Supply Chains under the Mixed Carbon Cap-and-Trade and Carbon Tax Policy in the Carbon Neutrality Era," IJERPH, MDPI, vol. 19(18), pages 1-21, September.
    10. Bertazzi, Luca & Moezi, Sarem Deilami & Maggioni, Francesca, 2021. "The value of integration of full container load, less than container load and air freight shipments in vendor–managed inventory systems," International Journal of Production Economics, Elsevier, vol. 241(C).
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    13. Coelho, Leandro Callegari & De Maio, Annarita & Laganà, Demetrio, 2020. "A variable MIP neighborhood descent for the multi-attribute inventory routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    14. Qiu, Yuzhuo & Ni, Ming & Wang, Liang & Li, Qinqin & Fang, Xuanjing & Pardalos, Panos M., 2018. "Production routing problems with reverse logistics and remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 87-100.
    15. Shuang, Yan & Diabat, Ali & Liao, Yi, 2019. "A stochastic reverse logistics production routing model with emissions control policy selection," International Journal of Production Economics, Elsevier, vol. 213(C), pages 201-216.
    16. Cao, Kaiying & Guo, Qiang & Xu, Yuqiu, 2023. "Information sharing and carbon reduction strategies with extreme weather in the platform economy," International Journal of Production Economics, Elsevier, vol. 255(C).
    17. Darvish, Maryam & Archetti, Claudia & Coelho, Leandro C., 2019. "Trade-offs between environmental and economic performance in production and inventory-routing problems," International Journal of Production Economics, Elsevier, vol. 217(C), pages 269-280.
    18. Zhang, Zhe & Gong, Xue & Song, Xiaoling & Yin, Yong & Lev, Benjamin & Chen, Jie, 2022. "A column generation-based exact solution method for seru scheduling problems," Omega, Elsevier, vol. 108(C).
    19. Delorme, Maxence & Santini, Alberto, 2022. "Energy-efficient automated vertical farms," Omega, Elsevier, vol. 109(C).
    20. Yiqiang Zhang & Hussam Alshraideh & Ali Diabat, 2018. "A stochastic reverse logistics production routing model with environmental considerations," Annals of Operations Research, Springer, vol. 271(2), pages 1023-1044, December.
    21. Li, Yantong & Chu, Feng & Chu, Chengbin & Zhu, Zhanguo, 2019. "An efficient three-level heuristic for the large-scaled multi-product production routing problem with outsourcing," European Journal of Operational Research, Elsevier, vol. 272(3), pages 914-927.
    22. Md. Anisul Islam & Yuvraj Gajpal, 2021. "Optimization of Conventional and Green Vehicles Composition under Carbon Emission Cap," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    23. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Cordeau, Jean-François & Guimarães, Luís & Jans, Raf, 2019. "Solving a large multi-product production-routing problem with delivery time windows," Omega, Elsevier, vol. 86(C), pages 154-172.
    24. Xuanjing Fang & Yanan Du & Yuzhuo Qiu, 2017. "Reducing Carbon Emissions in a Closed-Loop Production Routing Problem with Simultaneous Pickups and Deliveries under Carbon Cap-and-Trade," Sustainability, MDPI, vol. 9(12), pages 1-15, November.

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