Economic and Environmental Considerations in a Continuous Review Inventory Control System with Integrated Transportation Decisions

Abstract

Sustainability throughout supply chains is gaining more importance and re-planning inventory operations can help companies curb emissions. In this study, we present two bi-objective integrated continuous review inventory control and transportation models with less-than-truckload and truckload carriers. Solution methods to approximate the Pareto Frontiers are proposed. Numerical studies illustrate the effects of demand variance and lead time on expected costs and carbon emissions as well as the changes in expected costs and carbon emissions due to sustainability considerations. Sample examples illustrate the use of the methods to compare different carriers in terms of not only economic but also environmental considerations.

Department(s)

Engineering Management and Systems Engineering

Comments

This study has been partially supported by the University of Missouri Inter-Disciplinary Inter-Campus research program and the U.S. Department of Transportation through the National University Transportation Center at Missouri University of Science and Technology under Project # 00043159.

Keywords and Phrases

Carbon emission; Demand analysis; Emission control; Emission inventory; Environmental economics; Integrated approach; Stochasticity; Sustainability; Transportation safety; Inventory control; Stochastic demand; Transportation

International Standard Serial Number (ISSN)

1366-5545

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2015 Elsevier, All rights reserved.

Publication Date

01 Aug 2015

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