Coordinating a supply chain with a heterogeneous vehicle fleet under greenhouse gas emissions

Purpose – This paper studies a supply chain consisting of multiple suppliers and a single buyer. It considers the case where a set of heterogeneous trucks is used for transporting products, and develops a mathematical model that coordinates the supply chain. The purpose of this paper is to minimise the costs of producing and delivering a product as well as carbon emissions resulting from transportation. In addition, the authors analyse how imposing a tax on carbon emissions impacts the delivery of products from the suppliers to the buyer. Design/methodology/approach – It is assumed that heterogeneous vehicles are used for transporting products, which have different performance and cost attributes. A mathematical model that considers both operating costs and carbon emissions from transportation is developed. The impact of vehicle attributes on lot sizing and routing decisions is studied with the help of numerical examples and a sensitivity analysis. Findings – The analysis shows that considering carbon emi...

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