Abstract

One of the main concepts for improving the sustainability of supply chains is the collaboration between stakeholders by increasing the efficiency of their shared resources. In the literature, there are many research papers related to vertical collaboration in the logistics industry. However, horizontal collaboration has not received the same degree of attention. In fact, horizontal collaboration such as shared freight carrier and freight consolidation can also be considered vital for low-carbon supply chain solutions. In this paper, the problem of the design of supply chain transportation pooling strategies (SCTPS) is studied, which considers both vertical and horizontal collaboration. The purpose of this paper is to study the impact of these SCTPSs to reduce CO2 emissions using discrete-event simulation (DES)-based methodology. Using a numerical case study of two manufacturing companies and three customers, five SCTPS are studied including the following: (1) non-pooling strategy; (2) multi-pick strategy; (3) multi-drop strategy; (4) central hub strategy; and (5) combined hub and multi-drop strategy. The main result of the study is that all SCTPSs significantly reduce the CO2 emissions compared to the non-pooled supply chain. In fact, the reduction in CO2 emissions can reach 13% compared to the non-pooled strategy. Moreover, the best SCTPS that gives the minimum of CO2 is the hub strategy, followed by the multi-pick strategy and the multi-drop strategy.

Highlights

  • ObjectivesObjectives and Contributions of the StudyBased on the literature review, this research starts from two major assertions

  • The CO2 emissions mean per delivered pallet (MCO2R), the mean delivery times to the customer 1 (MDTC1), the mean delivery times to the customer 2 (MDTC2), and the mean delivery times to the customer 3 (MDTC3) have been compiled

  • The variable TCO2R (CO2 emission rate) should not be correlated to any of the delivery times for each customer, and this is for each valid strategy

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Summary

Objectives

Objectives and Contributions of the StudyBased on the literature review, this research starts from two major assertions. The majority of previous research in supply chain transportation pooling strategy (SCTPS), which can be named freight consolidation, have studied the impact of only one type of SCTPS on the supply chain performances. Most of the previous research is related to vertical collaboration in the supply chain and rarely to horizontal collaboration. To fil this gap, the present research is about analyzing the effect of various SCTPS to reduce CO2 emissions using discrete event simulation (DES). The studied problem of SCTPS design considers both vertical and horizontal collaboration. The studied supply chain is a network between two manufacturing companies and three customers and its suppliers to produce and distribute four product types. Five SCPS are studied and include the following: (1) non-pooling strategy; (2) multi-pick strategy;

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