Sustainable cold supply chain management under demand uncertainty and carbon tax regulation

Increasing awareness of sustainability in supply chain management has prompted organizations and individuals to consider environmental impacts when managing supply chains. The issues concerning environmental impacts are significant in cold supply chains due to substantial carbon emissions from storage and distribution of temperature-sensitive product. This paper investigates the impact of carbon emissions arising from storage and transportation in the cold supply chain in the presence of carbon tax regulation, and under uncertain demand. A two-stage stochastic programming model is developed to determine optimal replenishment policies and transportation schedules to minimize both operational and emissions costs. A matheuristic algorithm based on the Iterated Local Search (ILS) algorithm and a mixed integer programming is developed to solve the problem in realistic sizes. The performance and robustness of the matheuristic algorithm are analyzed using test instances in various sizes. A real-world case study in Queensland, Australia is used to demonstrate the application of the model. The results highlight that higher emissions price does not always contribute to the efficiency of the cold supply chain system. Furthermore, the analyses indicate that using heterogeneous fleet including light duty and medium duty vehicles can lead to further cost saving and emissions reduction.     

Achieving sustainable development of supply chain by incorporating various carbon regulatory mechanisms

Nowadays, sustainability issues have received considerable attention in supply chain management because of the governmental requirements as well as expectations of the people. This paper introduces a novel supply chain network design problem to cover three dimensions of sustainability, namely economic, environmental, and social. The advantage of the presented model stems from considering the booming development aligned with reduction in environmental impact. In this paper, to achieve the mentioned benefits and to derive a more sustainable supply chain, a novel model in the presence of the most commonly used carbon policies is proposed. This paper, addresses sustainable development through imposing proper carbon regulatory mechanisms. Main contribution of this study is to consider the effect of imposing carbon policies on environmental advantages as well as improving the regional development level in a supply chain network design problem. Moreover, the shipment consolidation decisions are utilized to reduce cost as well as environmental impact. In addition, a novel mixed uncertainty approach is proposed to capture the uncertain emission parameters. The numerical examples and a case study are analyzed to evaluate the performance of the proposed models. It is concluded that, a high-growth economy with low-carbon can be made and also almost global well-being of people is ensured by applying the proposed model. Some managerial insights are provided for the enterprises of supply chains to make the most appropriate sustainable decisions. Finally, proper carbon emission policies are suggested based on the region sustainability characteristics.     

The role of ‘indirect’ greenhouse gas emissions in tourism: Assessing the hidden carbon impacts from a holiday package tour

Tourism is a noticeable contributor to global greenhouse gas (GHG) emissions. Existing estimates of tourism’s carbon footprint are however incomplete as they fail to holistically assess the additional, ‘indirect’ carbon requirements. These arise from the non-use phases of a tourism product or service life cycle and can be further magnified by supply chain industries. Under-development of methods for carbon impact assessment in tourism is the primary reason for the omission of ‘indirect’ GHG emissions. This study develops a new approach for comprehensive appraisal of GHG emissions which incorporates and advances the methodological advantages of existing assessment techniques. It tests the applicability of this approach in tourism by conducting a holistic analysis of a standard holiday package to Portugal, based on the British tourism market. The new approach demonstrates the significance of the ‘indirect’ GHG emissions in the total carbon footprint from the holiday package, thus emphasising the necessity for more comprehensive future assessments.     

A carbon footprint-based closed-loop supply chain model under uncertainty with risk analysis: A case study

The management of products’ end-of-life and the recovery of used products has gained significant importance in recent years. In this paper, we address the carbon footprint-based problem that arises in a closed-loop supply chain where returned products are collected from customers. These returned products can either be disposed of or be remanufactured to be resold as new ones. Given this environment, an optimization model for a closed-loop supply chain (CLSC) in which carbon emission is expressed in terms of environmental constraints, i.e., carbon emission constraints, is developed. These constraints aim to limit the carbon emission per unit of product supplied with different transportation modes. Here, we design a closed-loop network where capacity limits, single-item management and uncertainty on product demands and returns are considered. First, fuzzy mathematical programming is introduced for uncertain modeling. Then, the statistical approach to the possibility to synthesize fuzzy information is utilized. Therefore, using a defined possibilistic mean and variance, we transform the proposed fuzzy mathematical model into a crisp form to facilitate efficient computation and analysis. Finally, the risk caused by violating the estimated resource constraints is analyzed so that decision makers (DMs) can trade off between the expected cost savings and the expected risk. We utilize data from a company located in Iran.     

The impact of alternative routeing and packaging scenarios on carbon and sulphate emissions in international wine distribution

There is a large body of research related to carbon footprint reduction in supply chains and logistics from a wide range of sectors; however the decarbonisation of freight transport is mostly explored from a single mode perspective and at a domestic/regional level. This paper takes into account a range of alternative transport modes, routes and methods with particular reference to UK wine imports from two regions: northern Italy and Southeast Australia. The research examines supply chain structures, costs and the environmental impact of international wine distribution to the UK. A number of options are evaluated to calculate the carbon footprint and sulphate emissions of alternative route, mode, method of carriage, and packaging combinations. The estimation of CO₂e emissions incorporates three main elements - cargo mass, distance and method of carriage; sulphate emissions are derived from actual ship routes, engine power and operational speeds. The bottling of wine either at source or close to destination is also taken into consideration. The key findings are: there are major differences between the environmental footprint of different routeing and packaging scenarios; the international shipping leg almost always has a much larger footprint than inland transport within the UK except in the hypothetical case of the rail shipments from Italy using flexitanks. With reference to sulphate, the lowest cost scenario among the sea maximizing options is also the sulphate minimising solution.     

Air transportation in a carbon constrained world: Long-term dynamics of policies and strategies for mitigating the carbon footprint of commercial aviation

With increasing demand for air transportation worldwide and decreasing marginal fuel efficiency improvements, the contribution of aviation to climate change relative to other sectors is projected to increase in the future. As a result, growing public and political pressures are likely to further target air transportation to reduce its greenhouse gas emissions. The key challenges faced by policy makers and air transportation industry stakeholders is to reduce aviation greenhouse gas emissions while sustaining mobility for passengers and time-sensitive cargo as well as meeting future demand for air transportation in developing and emerging countries. This paper examines five generic policies for reducing the emissions of commercial aviation; (1) technological efficiency improvements, (2) operational efficiency improvements, (3) use of alternative fuels, (4) demand shift and (5) carbon pricing (i.e. market-based incentives). In order to evaluate the impacts of these policies on total emissions, air transport mobility, airfares and airline profitability, a system dynamics modeling approach was used. The Global Aviation Industry Dynamics (GAID) model captures the systemic interactions and the delayed feedbacks in the air transportation system and allows scenarios testing through simulations. For this analysis, a set of 34 scenarios with various levels of aggressiveness along the five generic policies were simulated and tested. It was found that no single policy can maintain emissions levels steady while increasing projected demand for air transportation. Simulation results suggest that a combination of the proposed policies does produce results that are close to a “weak” sustainability definition of increasing supply to meet new demand needs while maintaining constant or increasing slightly emissions levels. A combination of policies that includes aggressive levels of technological and operations efficiency improvements, use of biofuels along with moderate levels of carbon pricing and short-haul demand shifts efforts achieves a 140% increase in capacity in 2024 over 2004 while only increasing emissions by 20% over 2004. In addition, airline profitability is moderately impacted (10% reduction) compared to other scenarios where profitability is reduced by over 50% which pose a threat to necessary investments and the implementation of mitigating measures to reduce CO2 emissions. This study has shown that an approach based on a portfolio of mitigating measures and policies spanning across technology and operational improvements, use of biofuels, demand shift and carbon pricing is required to transition the air transportation industry close to an operating point of environmental and mobility sustainability.     

Low-carbon futures for Shenzhen’s urban passenger transport: A human-based approach

Shenzhen, one of China’s leading cities, has the potential to be a model for achieving China’s ambitious CO₂ emission reduction targets. Using data from a travel diary survey in Shenzhen in 2014, we develop a human-based agent model to conduct a scenario study of future urban passenger transport energy consumption and CO₂ emissions from 2014 to 2050. Responses to different policy interventions at the individual level are taken into account. We find that with current policies, the carbon emissions of the urban passenger transport sector in Shenzhen will continuously increase without a peak before 2050. Strengthening 21 transport policies will help Shenzhen to peak the carbon emissions by 2030 for passenger transport. Among these policies, the car quota policy and the fuel economy standard are essential for achieving a carbon peak by 2030. In addition, a package of seven policies, including fewer car quotas, a stricter fuel economy standard, raising parking fees, limiting parking supply, increasing EV charging facilities and subway lines, and improving public transport services, is sufficient to peak carbon emissions by 2030, although at an emissions level higher than for the 21 policies.     

Measuring the equity effects of a carbon charge on car commuters: A case study of Manchester Airport

This papers attempts to quantify the equity effect of a hypothesized economic instrument, a carbon charge on car commuters, for reducing carbon dioxide emissions produced by commuters on airport surface access. Manchester Airport is taken as a case study using staff Survey data from 2008 and 2010. Consumer welfare change is analysed for measuring the equity effects of carbon charge by user group, which considers the changes of travel mode choice, the carbon dioxide emissions reduction, the revenue from a carbon charge and how it is distributed. First, the individual carbon footprint in terms of gram passenger kilometre, and the damage cost of carbon by commuters on airport surface access are estimated. Next, the impact of carbon charge on travel behaviour is investigated by the nested logit model. Finally, the net effect of carbon charges is assessed by travel mode user, gender, job type, and age group. The results show some impacts of the carbon charge on car users and carbon reduction, and the positive effects on lower income group and less carbon commuters. The quantified results provide the evidences for the mitigation policies to combine monetary incentives with disincentives for travel behaviour change, and demonstrate the different equity effects among commuter groups.     

Determining the number and location of winter road maintenance depots – a case study of the district road network in Serbia

Determining the number and location of depots for winter road maintenance (WRM) represents one of the important strategic decisions while planning WRM activities. However, most organizations dealing with WRM make empirically based decisions. Optimizing the number and location of WRM depots has the potential to achieve considerable cost savings, improve mobility and efficiency, as well as reduce environmental impacts. This paper presents two optimization models. The first model determines the location of WRM depots by minimizing the total distance travelled by maintenance vehicles. The second model determines the optimum number and location of WRM depots by minimizing total transportation costs and capital expenditure and operational expenditure of the depots. The models are then applied to the district road network in Serbia. Results show that their application could lead to significant reductions in WRM costs.     

An interdisciplinary study to explore impacts from policies for the introduction of low carbon vehicles

Driven by concerns of climate change, governments across the world are introducing a number of policies to accelerate the uptake of low carbon vehicles (LCVs), with a specific focus on electric motors. However, there is uncertainty in the effectiveness of such policies and technology pathways, which are inherently interlinked. This article considers the short-term situation to 2020 and focuses on the concern that these policies may bring about some disproportionate impacts in society due to changes in mobility. An ethical framework is established that seeks to balance obligations to reduce greenhouse gas (GHG) emissions and rights to car ownership, then selected policies are modelled within this framework to assess acceptability of implementation. Although these policies are successful in introducing LCVs and reducing GHG emissions, findings also indicate uneven cost burdens and reduced affordability of car ownership. Following this, recommendations for policy amendments and model improvements are made.     

Green supply chain network design to reduce carbon emissions

We consider a supply chain network design problem that takes CO₂ emissions into account. Emission costs are considered alongside fixed and variable location and production costs. The relationship between CO₂ emissions and vehicle weight is modeled using a concave function leading to a concave minimization problem. As the direct solution of the resulting model is not possible, Lagrangian relaxation is used to decompose the problem into a capacitated facility location problem with single sourcing and a concave knapsack problem that can be solved easily. A Lagrangian heuristic based on the solution of the subproblem is proposed. When evaluated on a number of problems with varying capacity and cost characteristics, the proposed algorithm achieves solutions within 1% of the optimal. The test results indicate that considering emission costs can change the optimal configuration of the supply chain, confirming that emission costs should be considered when designing supply chains in jurisdictions with carbon costs.     

Estimation of cost and CO2 emissions with a sustainable cross-border supply chain in the automobile industry: A case study of Thailand and neighboring countries

CO₂ emissions are increasing because of the growth in the cross-border supply chain, which is leading the locations of assembly plants and suppliers to spread across a wider area. Given that one passenger vehicle needs more than 20,000 components and parts, the automobile industry exploits the cross-border supply chain. Recently, the free cross-border movement of people, goods, capital, and information has accelerated in Asia. Therefore, a sustainable cross-border supply chain is required to reduce both CO₂ emissions and cost. This study estimates total CO₂ emissions per vehicle including production and transportation processes in Thailand and neighboring countries and the change in CO₂ emissions based on future policy scenarios that consider the automobile market and locational conditions in 2030. The results show that locating production close to the place of consumption and the electricity emissions factors in each country should be considered.     

Freight Transport Deceleration: Its Possible Contribution to the Decarbonisation of Logistics

The paper challenges the conventional view that the movement of goods through supply chains must continue to accelerate. The compression of freight transit times has been one of the most enduring logistics trends but may not be compatible with governmental climate change policies to cut greenhouse gas emissions by 60–80% by 2050. Opportunities for cutting CO₂ emissions by ‘despeeding' are explored within a freight decarbonisation framework and split into three categories: direct, indirect and consequential. Discussion of the direct carbon savings focuses on the trucking and deep-sea container sectors, where there is clear evidence that slower operation cuts cost, energy and emissions and can be accommodated within current supply chain requirements. Indirect emission reductions could accrue from more localised sourcing and a relaxation of just-in-time (JIT) replenishment. Acceleration of logistical activities other than transport could offset increases in freight transit times, allowing the overall carbon intensity of supply chains to reduce with minimal loss of performance. Consequential deceleration results from other decarbonisation initiatives such as freight modal split and a shift to lower carbon fuels. Having reviewed evidence drawn from a broad range of sources, the paper concludes that freight deceleration is a promising decarbonisation option, but raises a number of important issues that will require new empirical research.     

Reducing emissions through speed optimization in supply vessel operations

This paper examines how optimizing sailing speeds can reduce supply vessels emissions in the upstream supply chain to offshore installations. We introduce several speed optimization strategies to be used in construction of periodic vessel schedules. The strategies consider vessel waiting times before the start of service at installations and at supply base. Tests carried out on real instances from Statoil’s activities on the Norwegian continental shelf indicate that a 25% emissions and fuel cost reductions can be achieved without fleet size increase.     

Hydrogen refueling station networks for heavy-duty vehicles in future power systems

A potential solution to reduce greenhouse gas (GHG) emissions in the transport sector is to use alternatively fueled vehicles (AFV). Heavy-duty vehicles (HDV) emit a large share of GHG emissions in the transport sector and are therefore the subject of growing attention from global regulators. Fuel cell and green hydrogen technologies are a promising option to decarbonize HDVs, as their fast refueling and long vehicle ranges are consistent with current logistic operational requirements. Moreover, the application of green hydrogen in transport could enable more effective integration of renewable energies (RE) across different energy sectors. This paper explores the interplay between HDV Hydrogen Refueling Stations (HRS) that produce hydrogen locally and the power system by combining an infrastructure location planning model and an electricity system optimization model that takes grid expansion options into account. Two scenarios – one sizing refueling stations to support the power system and one sizing them independently of it – are assessed regarding their impacts on the total annual electricity system costs, regional RE integration and the levelized cost of hydrogen (LCOH). The impacts are calculated based on locational marginal pricing for 2050. Depending on the integration scenario, we find average LCOH of between 4.83 euro/kg and 5.36 euro/kg, for which nodal electricity prices are the main determining factor as well as a strong difference in LCOH between north and south Germany. Adding HDV-HRS incurs power transmission expansion as well as higher power supply costs as the total power demand increases. From a system perspective, investing in HDV-HRS in symbiosis with the power system rather than independently promises cost savings of around seven billion euros per annum. We therefore conclude that the co-optimization of multiple energy sectors is important for investment planning and has the potential to exploit synergies.     

Understanding the development of business travel policies: Reducing business travel,motivations and barriers

Business travel accounted in the UK in 2010 for 3% of trips and 10% of the UK’s domestic distance travelled (Department for Transport, 2011, p. 4). However, it is an under researched area, even though in major cities, where transport networks are most congested, it forms a higher proportion of trips. The paper presents the findings of a study of changing business travel practices and policies affecting the briefcase traveller. The findings are drawn from semi-structured interviews with key actors in stakeholder and private sector organisations based predominately in London and a survey of 150 business travellers. The study was designed to understand the motivations and attitudes towards reducing business travel and the compromises that needed to be made to balance reducing carbon emissions and cost, whilst maintaining or improving productivity and meeting the requirements of the business.The main findings show the approaches and implications of these approaches to reduce carbon emissions and costs, improve productivity and the impact of ICT. The findings show the importance of external reporting through the Carbon Reduction Commitment, the Carbon Disclosure Project and corporate responsibility reports as a motivator to develop new policies. The paper goes on to outline how some factors can be both barriers and motivations for change, such as customers insisting on meeting their suppliers face-to-face, but also requiring information on carbon emissions as part of the Carbon Disclosure Project. Individuals can also be both a barrier and a motivator to change. The role of existing travel and meeting habits and the view of some that travelling is a perk linked to status symbols have proved to be a hard barriers to overcome. However, a technically literate younger generation used to communicating virtually have challenged these practices.     

Sustainability provisions in the bus-scheduling problem

The traditional vehicle scheduling problem attempts to minimize capital and operating costs. However, the carbon footprint and toxic air pollutants have become an increasingly important consideration. This paper studies the bus-scheduling problem and evaluates new types of buses that use alternative energy sources to reduce emissions, including some toxic air pollutants and carbon dioxide. A time-space network based approach is applied to formulate the problem to reduce the numbers of arcs in the underlying network; CPLEX is used to solve the problem. The results show that the bus-scheduling model can significantly reduce the bus emissions – hence reducing the carbon footprint of the transit operation – while only slightly increasing operating costs.     

The multi-port berth allocation problem with speed optimization and emission considerations

The container shipping industry faces many interrelated challenges and opportunities, as its role in the global trading system has become increasingly important over the last decades. On the one side, collaboration between port terminals and shipping liners can lead to costs savings and help achieve a sustainable supply chain, and on the other side, the optimization of operations and sailing times leads to reductions in bunker consumption and, thus, to fuel cost and air emissions reductions. To that effect, there is an increasing need to address the integration opportunities and environmental issues related to container shipping through optimization. This paper focuses on the well known Berth Allocation Problem (BAP), an optimization problem assigning berthing times and positions to vessels in container terminals. We introduce a novel mathematical formulation that extends the classical BAP to cover multiple ports in a shipping network under the assumption of strong cooperation between shipping lines and terminals. Speed is optimized on all sailing legs between ports, demonstrating the effect of speed optimization in reducing the total time of the operation, as well as total fuel consumption and emissions. Furthermore, the model implementation shows that an accurate speed discretization can result in far better economic and environmental results.     

Fuel cycle emissions and life cycle costs of alternative fuel vehicle policy options for the City of Houston municipal fleet

Municipal fleet vehicle purchase decisions provide a direct opportunity for cities to reduce emissions of greenhouse gases (GHG) and air pollutants. However, cities typically lack comprehensive data on total life cycle impacts of various conventional and alternative fueled vehicles (AFV) considered for fleet purchase. The City of Houston, Texas, has been a leader in incorporating hybrid electric (HEV), plug-in hybrid electric (PHEV), and battery electric (BEV) vehicles into its fleet, but has yet to adopt any natural gas-powered light-duty vehicles. The City is considering additional AFV purchases but lacks systematic analysis of emissions and costs. Using City of Houston data, we calculate total fuel cycle GHG and air pollutant emissions of additional conventional gasoline vehicles, HEVs, PHEVs, BEVs, and compressed natural gas (CNG) vehicles to the City's fleet. Analyses are conducted with the Greenhouse Gases, Regulated Emissions, and Energy use in Transportation (GREET) model. Levelized cost per kilometer is calculated for each vehicle option, incorporating initial purchase price minus residual value, plus fuel and maintenance costs. Results show that HEVs can achieve 36% lower GHG emissions with a levelized cost nearly equal to a conventional sedan. BEVs and PHEVs provide further emissions reductions, but at levelized costs 32% and 50% higher than HEVs, respectively. CNG sedans and trucks provide 11% emissions reductions, but at 25% and 63% higher levelized costs, respectively. While the results presented here are specific to conditions and vehicle options currently faced by one city, the methods deployed here are broadly applicable to informing fleet purchase decisions.     

Essential elements in tactical planning models for container liner shipping

Tactical planning models for liner shipping problems such as network design and fleet deployment usually minimize the total cost or maximize the total profit subject to constraints including ship availability, service frequency, ship capacity, and transshipment. Most models in the literature do not consider slot-purchasing, multi-type containers, empty container repositioning, or ship repositioning, and they formulate the numbers of containers to transport as continuous variables. This paper develops a mixed-integer linear programming model that captures all these elements. It further examines from the theoretical point of view the additional computational burden introduced by incorporating these elements in the planning model. Extensive numerical experiments are conducted to evaluate the effects of the elements on tactical planning decisions. Results demonstrate that slot-purchasing and empty container repositioning have the largest impact on tactical planning decisions and relaxing the numbers of containers as continuous variables has little impact on the decisions.