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Investing in logistics facilities today to reduce routing emissions tomorrow

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  • Tricoire, Fabien
  • Parragh, Sophie N.

Abstract

We investigate the trade-off between strategic investment in facilities and the long-term environmental impact of daily logistics operations. For that purpose, we consider a bi-objective location-routing problem with the objectives of minimising the cost of strategic investments such as locating facilities and acquiring different types of vehicles, and minimising pollution by using CO2 emissions as an indicator. A set of representative days of operations are used to estimate the long-term environmental impact. After modelling that problem as a mixed-integer program, we develop a decomposition approach that constructs routes, then uses them in a separate set covering model to generate complete solutions. The suitability of our approach is investigated on benchmark test instances as well as on a case study in the city of Vienna. Experiments show that our approach is a valuable tool in aiding such long-term decisions.

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  • Tricoire, Fabien & Parragh, Sophie N., 2017. "Investing in logistics facilities today to reduce routing emissions tomorrow," Transportation Research Part B: Methodological, Elsevier, vol. 103(C), pages 56-67.
    • Handle: RePEc:eee:transb:v:103:y:2017:i:c:p:56-67
    DOI: 10.1016/j.trb.2017.03.006
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    Cited by:

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    2. M. Tadaros & A. Migdalas, 2022. "Bi- and multi-objective location routing problems: classification and literature review," Operational Research, Springer, vol. 22(5), pages 4641-4683, November.
    3. Miriam Enzi & Sophie N. Parragh & Jakob Puchinger, 2022. "The bi-objective multimodal car-sharing problem," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(2), pages 307-348, June.
    4. Bektaş, Tolga & Ehmke, Jan Fabian & Psaraftis, Harilaos N. & Puchinger, Jakob, 2019. "The role of operational research in green freight transportation," European Journal of Operational Research, Elsevier, vol. 274(3), pages 807-823.
    5. Oliveira, Leise Kelli de & Lopes, Gabriela Pereira & Oliveira, Renata Lúcia Magalhães de & Bracarense, Lílian dos Santos Fontes Pereira & Pitombo, Cira Souza, 2022. "An investigation of contributing factors for warehouse location and the relationship between local attributes and explanatory variables of Warehouse Freight Trip Generation Model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 206-219.
    6. Zajac, Sandra & Huber, Sandra, 2021. "Objectives and methods in multi-objective routing problems: a survey and classification scheme," European Journal of Operational Research, Elsevier, vol. 290(1), pages 1-25.
    7. Mohammad Asghari & Seyed Mohammad Javad Mirzapour Al-E-Hashem, 2021. "Green vehicle routing problem: A state-of-the-art review," Post-Print hal-03182944, HAL.
    8. Jasmin Grabenschweiger & Fabien Tricoire & Karl F. Doerner, 2018. "Finding the trade-off between emissions and disturbance in an urban context," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 554-591, September.
    9. Max Leyerer & Marc-Oliver Sonneberg & Maximilian Heumann & Michael H. Breitner, 2019. "Decision support for sustainable and resilience-oriented urban parcel delivery," EURO Journal on Decision Processes, Springer;EURO - The Association of European Operational Research Societies, vol. 7(3), pages 267-300, November.
    10. Anderluh, Alexandra & Nolz, Pamela C. & Hemmelmayr, Vera C. & Crainic, Teodor Gabriel, 2021. "Multi-objective optimization of a two-echelon vehicle routing problem with vehicle synchronization and ‘grey zone’ customers arising in urban logistics," European Journal of Operational Research, Elsevier, vol. 289(3), pages 940-958.
    11. 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).
    12. Dukkanci, Okan & Peker, Meltem & Kara, Bahar Y., 2019. "Green hub location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 116-139.
    13. Feiyue Qiu & Guodao Zhang & Ping-Kuo Chen & Cheng Wang & Yi Pan & Xin Sheng & Dewei Kong, 2020. "A Novel Multi-Objective Model for the Cold Chain Logistics Considering Multiple Effects," Sustainability, MDPI, vol. 12(19), pages 1-28, September.
    14. Emna Marrekchi & Walid Besbes & Diala Dhouib & Emrah Demir, 2021. "A review of recent advances in the operations research literature on the green routing problem and its variants," Annals of Operations Research, Springer, vol. 304(1), pages 529-574, September.
    15. Silva, Elsa & Ramos, António G. & Oliveira, José F., 2018. "Load balance recovery for multi-drop distribution problems: A mixed integer linear programming approach," Transportation Research Part B: Methodological, Elsevier, vol. 116(C), pages 62-75.
    16. Çağrı Koç, 2019. "Analysis of vehicle emissions in location-routing problem," Flexible Services and Manufacturing Journal, Springer, vol. 31(1), pages 1-33, March.

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