A methodology for assessing eco-efficiency in logistics networks |
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Authors: | J Quariguasi Frota Neto G Walther J Bloemhof JAEE van Nunen T Spengler |
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Institution: | 1. Rotterdam School of Management (RSM), Erasmus University, P.O. Box 1738, 300DR, Rotterdam, The Netherlands;2. Braunschweig Technical University, Institute for Economics and Business Administration, Germany |
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Abstract: | Recent literature on sustainable logistics networks points to two important questions: (i) How to spot the preferred solution(s) balancing environmental and business concerns? (ii) How to improve the understanding of the trade-offs between these two dimensions? We posit that a visual exploration of the efficient frontier and trade-offs between profitability and environmental impacts are particularly suitable to answer these two questions. The visual representation of the efficient frontier, however, presents two challenges. The first is to obtain a good approximation for such frontier without enumerating all extreme efficient solutions. The second is to obtain a good visual representation of the efficient frontier. We propose a two-phased heuristic to handle these two problems. The algorithm is designed for the multi-objective linear problem with three objectives: minimize costs, cumulative energy demand and waste in a reverse logistics network. We illustrate our approach by designing a complex recycling logistics network in Germany. |
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Keywords: | Eco-efficiency Sustainable supply chains Closed-loop supply chains Multi-objective programming Optimization |
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