Sustainable transportation and order quantity: insights from multiobjective optimization

Y. Bouchery, A. Ghaffari, Z. Jemai, J.C. Fransoo

Research output: Contribution to journalArticleScientificpeer-review

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.
Original languageEnglish
Pages (from-to)367-396
Number of pages30
JournalFlexible Services and Manufacturing Journal
Volume28
Issue number3
DOIs
Publication statusPublished - 25 Mar 2016

Keywords

  • Sustainable supply chain management
  • Multiobjective optimization
  • Transportation mode selection
  • Order quantity optimization

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