IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01954465.html
   My bibliography  Save this paper

Sustainable transportation and order quantity: insights from multiobjective optimization

Author

Listed:
  • Y Bouchery

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Asma Ghaffari

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Zied Jemai

    (ENIT - Ecole Nationale d'Ingénieurs de Tunis - UTM - Université de Tunis El Manar)

  • Jan C Fransoo

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

Suggested Citation

  • Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    • Handle: RePEc:hal:journl:hal-01954465
    DOI: 10.1007/s10696-016-9240-z
    Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-01954465
    as

    Download full text from publisher

    File URL: https://normandie-univ.hal.science/hal-01954465/document
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s10696-016-9240-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hua, Guowei & Cheng, T.C.E. & Wang, Shouyang, 2011. "Managing carbon footprints in inventory management," International Journal of Production Economics, Elsevier, vol. 132(2), pages 178-185, August.
    2. Keely L. Croxton & Bernard Gendron & Thomas L. Magnanti, 2003. "Models and Methods for Merge-in-Transit Operations," Transportation Science, INFORMS, vol. 37(1), pages 1-22, February.
    3. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    4. Shenle Pan & Eric Ballot & Frédéric Fontane, 2013. "The reduction of greenhouse gas emissions from freight transport by pooling supply chains," Post-Print hal-00733678, HAL.
    5. Demir, Emrah & Bektaş, Tolga & Laporte, Gilbert, 2014. "A review of recent research on green road freight transportation," European Journal of Operational Research, Elsevier, vol. 237(3), pages 775-793.
    6. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
    7. Dekker, Rommert & Bloemhof, Jacqueline & Mallidis, Ioannis, 2012. "Operations Research for green logistics – An overview of aspects, issues, contributions and challenges," European Journal of Operational Research, Elsevier, vol. 219(3), pages 671-679.
    8. Zied Jemai & Y Bouchery & Asma Ghaffari & Yves Dallery, 2012. "Including sustainability criteria into inventory models," Post-Print hal-01672398, HAL.
    9. Quariguasi Frota Neto, J. & Walther, G. & Bloemhof, J. & van Nunen, J.A.E.E. & Spengler, T., 2009. "A methodology for assessing eco-efficiency in logistics networks," European Journal of Operational Research, Elsevier, vol. 193(3), pages 670-682, March.
    10. Bouchery, Yann & Ghaffari, Asma & Jemai, Zied & Dallery, Yves, 2012. "Including sustainability criteria into inventory models," European Journal of Operational Research, Elsevier, vol. 222(2), pages 229-240.
    11. Absi, Nabil & Dauzère-Pérès, Stéphane & Kedad-Sidhoum, Safia & Penz, Bernard & Rapine, Christophe, 2013. "Lot sizing with carbon emission constraints," European Journal of Operational Research, Elsevier, vol. 227(1), pages 55-61.
    12. Retel Helmrich, Mathijn J. & Jans, Raf & van den Heuvel, Wilco & Wagelmans, Albert P.M., 2015. "The economic lot-sizing problem with an emission capacity constraint," European Journal of Operational Research, Elsevier, vol. 241(1), pages 50-62.
    13. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    14. Lap Mui Ann Chan & Ana Muriel & Zuo-Jun Max Shen & David Simchi-Levi & Chung-Piaw Teo, 2002. "Effective Zero-Inventory-Ordering Policies for the Single-Warehouse Multiretailer Problem with Piecewise Linear Cost Structures," Management Science, INFORMS, vol. 48(11), pages 1446-1460, November.
    15. Sundarakani, Balan & de Souza, Robert & Goh, Mark & Wagner, Stephan M. & Manikandan, Sushmera, 2010. "Modeling carbon footprints across the supply chain," International Journal of Production Economics, Elsevier, vol. 128(1), pages 43-50, November.
    16. Felipe Caro & Charles J. Corbett & Tarkan Tan & Rob Zuidwijk, 2013. "Double Counting in Supply Chain Carbon Footprinting," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 545-558, October.
    17. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    18. Bonney, Maurice & Jaber, Mohamad Y., 2011. "Environmentally responsible inventory models: Non-classical models for a non-classical era," International Journal of Production Economics, Elsevier, vol. 133(1), pages 43-53, September.
    19. Rosič, Heidrun & Jammernegg, Werner, 2013. "The economic and environmental performance of dual sourcing: A newsvendor approach," International Journal of Production Economics, Elsevier, vol. 143(1), pages 109-119.
    20. Rieksts, Brian Q. & Ventura, Jose A., 2008. "Optimal inventory policies with two modes of freight transportation," European Journal of Operational Research, Elsevier, vol. 186(2), pages 576-585, April.
    21. Glock, C. H. & Jaber, M. Y. & El Saadany, A., 2013. "Supply Chain Coordination with Emission Reduction Incentives," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57672, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    22. Pan, Shenle & Ballot, Eric & Fontane, Frédéric, 2013. "The reduction of greenhouse gas emissions from freight transport by pooling supply chains," International Journal of Production Economics, Elsevier, vol. 143(1), pages 86-94.
    23. Tang, Christopher S. & Zhou, Sean, 2012. "Research advances in environmentally and socially sustainable operations," European Journal of Operational Research, Elsevier, vol. 223(3), pages 585-594.
    24. Konur, Dinçer, 2014. "Carbon constrained integrated inventory control and truckload transportation with heterogeneous freight trucks," International Journal of Production Economics, Elsevier, vol. 153(C), pages 268-279.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    2. Aleksander Banasik & Jacqueline M. Bloemhof-Ruwaard & Argyris Kanellopoulos & G. D. H. Claassen & Jack G. A. J. Vorst, 2018. "Multi-criteria decision making approaches for green supply chains: a review," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 366-396, September.
    3. Vahid Reza Soleymanfar & Ahmad Makui & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2022. "Sustainable EOQ and EPQ models for a two-echelon multi-product supply chain with return policy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5317-5343, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Palak, Gökçe & Ekşioğlu, Sandra Duni & Geunes, Joseph, 2014. "Analyzing the impacts of carbon regulatory mechanisms on supplier and mode selection decisions: An application to a biofuel supply chain," International Journal of Production Economics, Elsevier, vol. 154(C), pages 198-216.
    3. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
    4. Bouchery, Yann & Ghaffari, Asma & Jemai, Zied & Tan, Tarkan, 2017. "Impact of coordination on costs and carbon emissions for a two-echelon serial economic order quantity problem," European Journal of Operational Research, Elsevier, vol. 260(2), pages 520-533.
    5. Barbosa-Póvoa, Ana Paula & da Silva, Cátia & Carvalho, Ana, 2018. "Opportunities and challenges in sustainable supply chain: An operations research perspective," European Journal of Operational Research, Elsevier, vol. 268(2), pages 399-431.
    6. 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.
    7. Konur, Dinçer, 2014. "Carbon constrained integrated inventory control and truckload transportation with heterogeneous freight trucks," International Journal of Production Economics, Elsevier, vol. 153(C), pages 268-279.
    8. Konur, Dinçer, 2017. "Non-collaborative emission targets joining and quantity flow decisions in a Stackelberg setting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 60-82.
    9. Meng, Xiaoge & Yao, Zhong & Nie, Jiajia & Zhao, Yingxue & Li, Zenglu, 2018. "Low-carbon product selection with carbon tax and competition: Effects of the power structure," International Journal of Production Economics, Elsevier, vol. 200(C), pages 224-230.
    10. Bozorgi, Ali & Pazour, Jennifer & Nazzal, Dima, 2014. "A new inventory model for cold items that considers costs and emissions," International Journal of Production Economics, Elsevier, vol. 155(C), pages 114-125.
    11. Tang, Shaolong & Wang, Wenjie & Cho, Stella & Yan, Hong, 2018. "Reducing emissions in transportation and inventory management: (R, Q) Policy with considerations of carbon reduction," European Journal of Operational Research, Elsevier, vol. 269(1), pages 327-340.
    12. Mateen, Arqum & Chatterjee, Ashis K, 2015. "Vendor Managed Inventory System with Emission Related Costs," Working papers 185, Indian Institute of Management Kozhikode.
    13. Arqum Mateen & Abhishek Srivastava & Ashis Kumar Chatterjee, 2020. "Strategic selection of VMI replenishment policy with emission costs: an analytical approach," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 401-414, December.
    14. Arıkan, Emel & Jammernegg, Werner, 2014. "The single period inventory model under dual sourcing and product carbon footprint constraint," International Journal of Production Economics, Elsevier, vol. 157(C), pages 15-23.
    15. Bozorgi, Ali, 2016. "Multi-product inventory model for cold items with cost and emission consideration," International Journal of Production Economics, Elsevier, vol. 176(C), pages 123-142.
    16. McDonald, Conor M., 2016. "Integrating packaging and supply chain decisions: Selection of economic handling unit quantities," International Journal of Production Economics, Elsevier, vol. 180(C), pages 208-221.
    17. Andriolo, Alessandro & Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2015. "Haulage sharing approach to achieve sustainability in material purchasing: New method and numerical applications," International Journal of Production Economics, Elsevier, vol. 164(C), pages 308-318.
    18. Aleksander Banasik & Jacqueline M. Bloemhof-Ruwaard & Argyris Kanellopoulos & G. D. H. Claassen & Jack G. A. J. Vorst, 2018. "Multi-criteria decision making approaches for green supply chains: a review," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 366-396, September.
    19. Dinçer Konur & Joseph Geunes, 2019. "Integrated districting, fleet composition, and inventory planning for a multi-retailer distribution system," Annals of Operations Research, Springer, vol. 273(1), pages 527-559, February.
    20. Mateen, Arqum & Chatterjee, Ashis K, 2015. "Analysis of Replenishment Policy Options in VMI Systems with Emission Related Cost," Working papers 186, Indian Institute of Management Kozhikode.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01954465. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.