Abstract
This article introduces a sustainable integrated bi-objective location-routing model, its two-phase solution approach and an analysis procedure for the distribution side of three-echelon logistics networks. The mixed-integer programming model captures several real-world factors by introducing an additional objective function and a set of new constraints in the model that outbound logistics channels find difficult to reconcile. The sustainable model minimises CO2 emissions from transportation and total costs incurred in facilities and the transportation channels. Design of Experiment (DoE) is integrated to the meta-heuristic based optimiser to solve the model in two phases. The DoE-guided solution approach enables the optimiser to offer the best stable solution space by taking out solutions with poor design features from the space and refining the feasible solutions using a convergence algorithm thereby selecting the realistic results. Several alternative solution scenarios are obtained by prioritising and ranking the realistic solution sets through a multi-attribute decision analysis tool, Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The robust model provides the decision maker the ability to take decisions on sustainable open alternative optimal routes. The outcomes of this research provide theoretical and methodological contributions, in terms of integrated bi-objective location-routing model and its two-phase DoE-guided meta-heuristic solution approach, for the distribution side of three-echelon logistics networks.
Highlights
Sustainable logistics operations and their effect on carbon emissions and costs are a current strategic challenge in modern supply chains (SCs) (Du et al 2017; McKinnon et al 2015; Brandenburg and Rebs 2015; Kumar et al 2012; Srivastava 2007)
Phase-I is implemented with an initial population of 50 different designs in the Design of Experiment (DoE) table consisting of 10 DoE sequences
A statistical solution summary (Table 8) on the computed maximum and minimum levels of CO2 emission and costs based on the DoE tables is obtained
Summary
Sustainable logistics operations and their effect on carbon emissions and costs are a current strategic challenge in modern supply chains (SCs) (Du et al 2017; McKinnon et al 2015; Brandenburg and Rebs 2015; Kumar et al 2012; Srivastava 2007). Sustainable location-routing problem (LRP) is of major concern in logistics networks design (Srivastava 2007; Seuring and Müller 2008). A sustainable transportation strategy within a logistics network promotes an approach that seeks to achieve mutually reinforcing benefits for the economy, the environment and society (Ilbery and Maye 2005). The transportation routes should be planned so as to minimise CO2 emissions and costs resulted from transportation activities
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