Carbon Reduction Investments under Direct Shipment Strategy

Recently much research efforts have focused on how to manage carbon emissions in logistics operations. This paper formulates a model to determine an optimal shipment size with aims to minimize the total cost consisting not only of inventory and transportation costs but also cost for carbon emissions...

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Bibliographic Details
Published in:Management science & financial engineering 2015, 21(1), , pp.25-29
Main Author: Min, Daiki
Format: Article
Language:English
Subjects:
경영학
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Summary:Recently much research efforts have focused on how to manage carbon emissions in logistics operations. This paper formulates a model to determine an optimal shipment size with aims to minimize the total cost consisting not only of inventory and transportation costs but also cost for carbon emissions. Unlike the literature assuming carbon emission factors as a given condition, we consider the emission factors as decision variables. It is allowed to make an investment in improving carbon emission factors. The optimal investment decision is shown to be of a threshold type with respect to unit investment costs. Moreover, the findings in this work provide insights on the various elements of the investment decision and their impacts.
ISSN:2287-2043
2287-2361
DOI:10.7737/MSFE.2015.21.1.025