Optimisation of freight flows and sourcing in sustainable production and transportation networks

Abstract

Global supply chains require integrated cost optimisation of sourcing, production and distribution through flexible networks of suppliers, manufacturers and logistics operators. The minimisation of environmental impacts of freight flows must be considered for sustainable development and should turn into a competitive advantage. To these aims, the paper presents a model integrating supply, production networks and sustainable freight transportation for strategic and tactical decision-making. Bill-of-Materials constraints are included in the model. The objective function considers sourcing, production and transportation costs as well as carbon dioxide emissions as environmental impacts of transport over a multimodal network. Computational experiments demonstrate the effectiveness of the model for cost-emissions analysis.