Management Science and Financial Engineering

The Korean Operations Research and Management Science Society (한국경영과학회)
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Carbon Reduction Investments under Direct Shipment Strategy

  • Min, Daiki (School of Business, Ewha Womans University)
  • Received : 2015.05.11
  • Accepted : 2015.05.26
  • Published : 2015.05.31
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Abstract

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.

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Cited by

  1. A Joint Optimal Decision on Shipment Size and Carbon Reduction under Direct Shipment and Peddling Distribution Strategies vol.9, pp.11, 2017, https://doi.org/10.3390/su9112061