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Analysis of Operation Cost Savings Effects of Direct Delivery Logistics Strategy Considering Carbon Emission

탄소배출을 고려한 직배송 물류전략의 운영비용 절감효과 분석

  • Kim, Mi-Rye (Transportation and Logistics System & ITS Engineering, University of Science and Technology) ;
  • Cho, In-Ho (Propulsion System Research Team, Korea Railroad Research Institute)
  • 김미례 (과학기술연합대학원대학교 교통물류시스템 및 ITS공학) ;
  • 조인호 (한국철도기술연구원 추진시스템연구팀)
  • Received : 2017.03.17
  • Accepted : 2017.06.09
  • Published : 2017.06.30

Abstract

This study compares and analyzes the operation costs of traditional and direct delivery strategies considering carbon emissions. For the determination of minimum operation costs and order quantity, we use the Economic Order Quantity (EOQ) model, which is the proper method for calculate the operation costs by logistics strategy. Using the classical EOQ model, we expand the EOQ model considering carbon emissions and domestic logistics environment. We conduct an empirical study on two agri-food logistics strategies under limitation of the carbon emissions using the expanded EOQ model. From the results of the empirical study, we find that the operation costs of direct delivery strategy are about 50% lower than those of the traditional strategy. Economic order quantity is also smaller than that of the traditional strategy. These results indicate that agri-food products can be transported quickly and freshly under direct delivery strategy. Consequently, considering carbon emissions, direct delivery logistics strategy are analyzed to have more positive effect on economic and environmental issues than existing logistics strategy. It is judged that direct strategy will also increase the freshness of agricultural products.

Keywords

Agri-food logistics;Carbon Emission;Direct Delivery Logistics Strategy;EOQ;Operation Costs

Acknowledgement

Supported by : 한국철도기술연구원

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