Effect of carbon emission regulations on transport mode selection under stochastic demand

K.M.R. Hoen, T. Tan, J.C. Fransoo, G.J.J.A.N. Houtum van

Research output: Contribution to journalArticleScientificpeer-review

Abstract

More and more companies are paying attention to their carbon footprint beyond production emissions. In this work we consider a ‘carbon-aware’ company (either by choice or enforced by regulation) that is reconsidering the transport mode selection decision. Traditionally the trade-off has been between lead time (and corresponding inventory costs) and transportation costs but now emission costs come into the equation. We use a carbon emission measurement methodology based on real-life data and incorporate it into an inventory model. We consider the results for different types of emission regulation (including voluntary targets). We find that even though large emission reductions can be obtained by switching to a different mode, the actual decision depends on the regulation and non-monetary considerations, such as lead time variability.
Original languageEnglish
Pages (from-to)170-195
Number of pages26
JournalFlexible Services and Manufacturing Journal
Volume26
Issue number1-2
DOIs
Publication statusPublished - 2014

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