Design and planning for green global supply chains under periodic review replenishment policies |
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| Institution: | 1. Department of Mechanical Engineering, Aristotle University of Thessaloniki, P.O. Box 461, 54124 Thessaloniki, Greece;2. Econometric Institute, Erasmus University Rotterdam, Burg. Oudlaan 50, 3062 PA Rotterdam, The Netherlands;1. ICMA Centre, Henley Business School, University of Reading, Whiteknights, Reading RG6 6BA, UK;2. Athens University of Economics and Business, 76 Patission St, Athens, TK 10434, Greece;3. Department of Commerce, Finance and Shipping, Cyprus University of Technology, 115 Spyrou Araouzou Street, P.O. Box 50329, 3603 Limassol, Cyprus;4. School of Business Administration, American University of Sharjah, PO Box 26666, Sharjah, United Arab Emirates;1. Department of Maritime Administration, Texas A&M University at Galveston, 200 Seawolf Parkway, PO Box 1675, Galveston, TX 77553-1675, USA;2. Department of Shipping, Trade & Transport, University of the Aegean, 2 Korai St, 82 100 Chios, Greece;3. MedCruise 10, Akti Miaouli str. Piraeus 18538, Greece;1. Engineering Management and Systems Engineering, Missouri University of Science and Technology, 206 Engineering Management 600 W. 14th Street, Rolla, MO, 65409, USA;2. College of Business Administration, University of Missouri-St. Louis, St. Louis, MO, USA;3. Product Change Control Engineer, Caterpillar Inc., Denison, TX, USA |
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| Abstract: | We quantify the impact of jointly optimizing strategic network design and tactical inventory planning on the cost and CO2 emissions of multi-echelon logistics networks. The obtained insights indicate that longer optimized replenishment cycles reduce a node’s transportation cost and CO2 emissions but increase its inventory costs. Moreover, under a fixed replenishment cycle, a node’s service level increases when supplied by a satellite warehouse. Finally: (i) the costs of implementing optimal green network design decisions could be misleading if inventory planning is neglected, (ii) greening of supply chains could become expensive, (iii) current legislative CO2 ton prices hardly influence logistics networks. |
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| Keywords: | Green supply chain management Supply chain network design Environment Periodic review inventory planning system |
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