Assessing the Environmental Benefits of Horizontal Cooperation in Logistics
(2018) EWG_ORD 2018 Workshop: OR for Sustainable Development — Location: Madrid (5.July.2018)
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- Authors
Hacardiaux, Thomas 
- Abstract
- Nowadays, eco-friendly strategies become a competitive advantage for companies, as the final customers are aware of the climate change and preferentially purchase responsible products. In addition to an ecological conception of the product, companies also try to reduce their carbon footprint along their supply chain. In this context, substantial environmental benefits can be reached by horizontal cooperation, i.e. the collaboration of companies that work at the same level of the supply chain. We evaluate the CO2 emissions reductions using a location-inventory model, formulated as a conic quadratic mixed integer program, which minimizes facility opening, transportation, cycle inventory, ordering and safety stock costs. To understand the impact of different markets and partners characteristics on the CO2 emissions reductions, we compute a large set of numerical experiments, varying several key parameters (vehicles capacity, facility opening cost, inventory holding cost, order cost, demand variability and distances). Results show that the horizontal cooperation allows an average CO2 emissions reduction of 16%. Moreover, the horizontal cooperation is more profitable environmentally for companies with low facility opening costs and low order costs, carrying expensive products (high unit holding cost) on a market with a high demand variability and a vast market area.
- Affiliations
Citations
Hacardiaux, T., & Tancrez, J.-S. (2018). Assessing the Environmental Benefits of Horizontal Cooperation in Logistics. EWG_ORD 2018 Workshop: OR for Sustainable Development, Madrid. https://hdl.handle.net/2078.5/172608