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Assessing the impact of cost optimization based on infrastructure modelling on CO2 emissions

Harris, Irina ORCID:, Naim, Mohamed Mohamed ORCID:, Palmer, Andrew, Potter, Andrew Thomas ORCID: and Mumford, Christine Lesley ORCID: 2011. Assessing the impact of cost optimization based on infrastructure modelling on CO2 emissions. International Journal of Production Economics 131 (1) , pp. 313-321. 10.1016/j.ijpe.2010.03.005

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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 cost optimization approach to strategic modelling on overall logistics costs and CO2 emissions 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 CO2 emissions, therefore there is a need to address economical and environmental objectives explicitly as part of the logistics design.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Computer Science & Informatics
Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > HF Commerce
Q Science > Q Science (General)
Uncontrolled Keywords: Sustainable logistics; Strategic decision making; Simulation; Case study
Publisher: Elsevier
ISSN: 0925-5273
Last Modified: 03 Dec 2022 11:43

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