We quantify the impact of jointly optimizing strategic network design and tactical inventory planning on the cost and CO2 emissions of multi-echelon logistics networks. The obtained insights indicate that longer optimized replenishment cycles reduce a node's transportation cost and CO2 emissions but increase its inventory costs. Moreover, under a fixed replenishment cycle, a node's service level increases when supplied by a satellite warehouse. Finally: (i) the costs of implementing optimal green network design decisions could be misleading if inventory planning is neglected, (ii) greening of supply chains could become expensive, (iii) current legislative CO2 ton prices hardly influence logistics networks.
|Number of pages||26|
|Journal||Transportation Research Part E: Logistics and Transportation Review|
|Publication status||Published - 1 Dec 2014|
Bibliographical noteFunding Information:
This research paper has been funded by the EU (European Social Fund – ESF) and Greek National Funds through the Operational Program “Education and Lifelong Learning” of the National Strategic Reference Framework (NSRF) - Research Funding Program: Heraclitus II, investing in knowledge society through the European Social Fund. It has also been conducted in the context of the GREEN-AgriChains project that is funded from the European Community’s Seventh Framework Programme (FP7-REGPOT-2012-2013-1) under Grant Agreement No. 316167. All the above reflect only the authors’ views; The European Union is not liable for any use that may be made of the information contained herein.
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