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Sustainable transportation and order quantity: insights from multiobjective optimization

Author

Listed:
  • Yann Bouchery

    (Axe Logistique Terre Mer Risque)

  • Asma Ghaffari

    (Ecole Centrale Paris)

  • Zied Jemai

    (Ecole Centrale Paris
    University of Tunis El Manar)

  • Jan Fransoo

    (Eindhoven University of Technology)

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.

Suggested Citation

  • Yann Bouchery & Asma Ghaffari & Zied Jemai & Jan Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Flexible Services and Manufacturing Journal, Springer, vol. 28(3), pages 367-396, September.
    • Handle: RePEc:spr:flsman:v:28:y:2016:i:3:d:10.1007_s10696-016-9240-z
    DOI: 10.1007/s10696-016-9240-z
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    References listed on IDEAS

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    Cited by:

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