Green dynamic multimodal logistics network design problem considering financing decisions: a case study of cement logistics.

Abstract

Logistics network is one of the most important parts of supply chains with significant share in achieving sustainability across them. In this paper, we investigate a new multi-objective mixed integer linear programming model for the design of multimodal logistics network. A bi-objective mathematical model is introduced and two conflicting objectives including the minimization of total cost and the total environmental impact are taken into account. Effective environmental life cycle assessment-based method is incorporated in the model to estimate the relevant environmental impacts. Due to budget constraints, financing decisions for facility construction are considered in the proposed model. To cope with the model objective functions, the augmented ε-constraint method is applied. Computational analysis is also provided by using a cement multimodal rail-road logistics network case study to present the significance of the proposed model. Results show that utilizing the proposed multi-period optimization model influences the location of multimodal terminals and their construction time. Also, the results show that the use of the proposed model enhances the efficiency of terminals. On the other hand, computational results indicate that preferences of decision-makers and the importance of environmental objective have significant impacts on the topology of transportation network.