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Assessing the environmental impact of integrated inventory and warehouse management

Author

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  • Fichtinger, Johannes
  • Ries, Jörg M.
  • Grosse, Eric H.
  • Baker, Peter

Abstract

There has been considerable research on the environmental impact of supply chains but most of this has concentrated on the transport elements. The environmental impact of warehousing has received relatively little attention except within the context of distribution networks. A high proportion of total warehouse emissions emanate from heating, cooling, air conditioning and lighting and these aspects are largely related to warehouse size. This in turn is greatly influenced by inventory management, affecting stockholding levels, and warehouse design, affecting the footprint required for holding a given amount of stock. Other emissions, such as those caused by material handling equipment, are closely related to warehouse throughput and equipment choice. There is a substantial gap in the literature regarding this interaction between inventory and warehouse management and its environmental impact. The purpose of this paper is to contribute to filling this gap. Therefore, an integrated simulation model has been built to examine this interaction and the results highlight the key effects of inventory management on warehouse-related greenhouse gas emissions. In particular, it is found that decisions on supply lead times, reorder quantities, and storage equipment all have an impact on costs and emissions and therefore this integrated approach will inform practical decision making. Additionally, it is intended that the paper provides a framework for further research in this important area.

Suggested Citation

  • Fichtinger, Johannes & Ries, Jörg M. & Grosse, Eric H. & Baker, Peter, 2015. "Assessing the environmental impact of integrated inventory and warehouse management," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 717-729.
    • Handle: RePEc:eee:proeco:v:170:y:2015:i:pc:p:717-729
    DOI: 10.1016/j.ijpe.2015.06.025
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    Cited by:

    1. P. Mala & M. Palanivel & S. Priyan & N. Anbazhagan & Srijana Acharya & Gyanendra Prasad Joshi & Joohan Ryoo, 2021. "Sustainable Decision-Making Approach for Dual-Channel Manufacturing Systems under Space Constraints," Sustainability, MDPI, vol. 13(20), pages 1-22, October.
    2. Mohammed Alnahhal & Bashir Salah & Mohammed Ruzayqat, 2022. "An Efficient Approach to Investigate the Tradeoff between Double Handling and Needed Capacity in Automated Distribution Centers," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    3. Battini, Daria & Glock, Christoph H. & Grosse, Eric H. & Persona, Alessandro & Sgarbossa, Fabio, 2017. "Reprint of “Ergo-lot-sizing: An approach to integrate ergonomic and economic objectives in manual materials handling”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 32-42.
    4. Ghulam Naseer Shah & Muhammad Asim, 2019. "Impact of E-Logistics on Warehousing Management Performance at English Biscuit Manufacturing," Business Management and Strategy, Macrothink Institute, vol. 10(2), pages 132-162, December.
    5. Sara Perotti & Lorenzo Bruno Prataviera & Marco Melacini, 2022. "Assessing the environmental impact of logistics sites through CO2eq footprint computation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1679-1694, May.
    6. Nidhi Handa & S. R. Singh & Neha Punetha, 2022. "Impact of carbon emission in two-echelon supply chain inventory decision with controllable deterioration and two-level trade-credit period," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1555-1586, December.
    7. Fan Liu & Ning Ma, 2019. "Multicriteria ABC Inventory Classification Using the Social Choice Theory," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    8. Miljenko Mustapić & Maja Trstenjak & Petar Gregurić & Tihomir Opetuk, 2023. "Implementation and Use of Digital, Green and Sustainable Technologies in Internal and External Transport of Manufacturing Companies," Sustainability, MDPI, vol. 15(12), pages 1-25, June.
    9. Eleonora Bottani & Giorgia Casella & Majcol Nobili & Letizia Tebaldi, 2022. "An Analytic Model for Estimating the Economic and Environmental Impact of Food Cold Supply Chain," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    10. Pablo Becerra & Josefa Mula & Raquel Sanchis, 2022. "Sustainable Inventory Management in Supply Chains: Trends and Further Research," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    11. Raffaele Carli & Mariagrazia Dotoli & Salvatore Digiesi & Francesco Facchini & Giorgio Mossa, 2020. "Sustainable Scheduling of Material Handling Activities in Labor-Intensive Warehouses: A Decision and Control Model," Sustainability, MDPI, vol. 12(8), pages 1-25, April.
    12. Brandenburg, Marcus, 2017. "A hybrid approach to configure eco-efficient supply chains under consideration of performance and risk aspects," Omega, Elsevier, vol. 70(C), pages 58-76.
    13. Govindan, Kannan & Kilic, Merve & Uyar, Ali & Karaman, Abdullah S., 2021. "Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation," International Journal of Production Economics, Elsevier, vol. 231(C).
    14. Konur, Dinçer & Campbell, James F. & Monfared, Sepideh A., 2017. "Economic and environmental considerations in a stochastic inventory control model with order splitting under different delivery schedules among suppliers," Omega, Elsevier, vol. 71(C), pages 46-65.
    15. Atashi Khoei, Arsham & Süral, Haldun & Tural, Mustafa Kemal, 2023. "Energy minimizing order picker forklift routing problem," European Journal of Operational Research, Elsevier, vol. 307(2), pages 604-626.
    16. Julia Freis & Philipp Vohlidka & Willibald A. Günthner, 2016. "Low-Carbon Warehousing: Examining Impacts of Building and Intra-Logistics Design Options on Energy Demand and the CO 2 Emissions of Logistics Centers," Sustainability, MDPI, vol. 8(5), pages 1-36, May.
    17. Yingdan Zhang & Xuemei Fan & Yingying Cao & Jiahui Xue, 2024. "Exploring Symbiosis: Innovatively Unveiling the Interplay between the Cold Chain Logistics of Fresh Agricultural Products and the Ecological Environment," Agriculture, MDPI, vol. 14(4), pages 1-21, April.
    18. Sadia Samar Ali & Rajbir Kaur & Shahbaz Khan, 2023. "Evaluating sustainability initiatives in warehouse for measuring sustainability performance: an emerging economy perspective," Annals of Operations Research, Springer, vol. 324(1), pages 461-500, May.
    19. Jianming Cai & Xiaokang Li & Yue Liang & Shan Ouyang, 2021. "Collaborative Optimization of Storage Location Assignment and Path Planning in Robotic Mobile Fulfillment Systems," Sustainability, MDPI, vol. 13(10), pages 1-26, May.
    20. Hyun-woo Jeon & Ahmad Ebrahimi & Ga-hyun Lee, 2023. "A Simulation-Based Experimental Design for Analyzing Energy Consumption and Order Tardiness in Warehousing Systems," Sustainability, MDPI, vol. 15(20), pages 1-25, October.

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