Citation:
Irina Harris, Mohamed Naim, Andrew Palmer, Andrew
Potter, Christine Mumford. Assessing the impact of cost optimization based oninfrastructure modelling on
CO2 emissions. International Journal of Production Economic, Volume 131, Issue 1, May 2011, Pages 313-321.
Abstract:
Traditionally, logistics design is driven by a need to reduce costs and improve
customer service. Recently, the environmental concerns from transport have been
increasingly discussed. The traffic levels and associated energy consumption are
influenced by supply chain structure, modal split and vehicle utilization. This
paper aims to assess the impact of the traditional costoptimization approach to
strategic modelling on overall logistics costs and CO2emissions by taking into
account the supply chain structure (number of depots) and different freight
vehicle utilization ratios (90%, 75% and 60%). The simulation model, based on a
European case study from the automotive industry, considers strategic and
operational level decisions simultaneously. The analysis shows that the optimum
design based on costs does not necessary equate to an optimum solution for
CO2emissions, therefore there is a need to address economical and environmental
objectives explicitly as part of the logistics design.
