Abstract

This paper proposes a new model of simultaneous optimization of three-level logistics decisions, for logistics authorities, logistics operators, and logistics users, for regional logistics network with environmental impact consideration. The proposed model addresses the interaction among the three logistics players in a complete competitive logistics service market with CO2 emission charges. We also explicitly incorporate the impacts of the scale economics of the logistics park and the logistics users' demand elasticity into the model. The logistics authorities aim to maximize the total social welfare of the system, considering the demand of green logistics development by two different methods: optimal location of logistics nodes and charging a CO2 emission tax. Logistics operators are assumed to compete with logistics service fare and frequency, while logistics users minimize their own perceived logistics disutility given logistics operators' service fare and frequency. A heuristic algorithm based on the multinomial logit model is presented for the three-level decision model, and a numerical example is given to illustrate the above optimal model and its algorithm. The proposed model provides a useful tool for modeling competitive logistics services and evaluating logistics policies at the strategic level.

Highlights

  • Environmental issues have recently attracted considerable public attention around the world

  • We propose a three-level logistics decisions model on green regional logistics network considering the environmental impact as shown Figure 1

  • A service, denoted as as ∈ As, is defined by a logistics service route in the physical logistics network Gp = (Np, Ap). It consists of a sequence of logistics nodes on the service route and is differentiated by type of logistics services

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Summary

Introduction

Environmental issues have recently attracted considerable public attention around the world. The CO2 emissions from transportation amount to 93% of total pollution emissions, while the warehousing only covers 7% [2]. It is, very important and urgent to create an environmentally sustainable logistics system. As an important component of a regional logistics system (or urban logistics system), logistics network design is a strategic issue, involving logistics facility planning and sustainable logistics management policy-making [6, 7]. Various logistics centers have recently been established in large cities for quickly distributing freight. This raises many important issues, such as traffic congestion, air pollution, and high energy consumption. A logistics park implies a spatial concentration area for grouping various activities, such as transportation, distribution, The Scientific World Journal

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Model Formulation and Solution Analysis
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