Yann Bouchery, professor in Supply Chain Management & Logistics at EM Normandie, has written an article together with A. Ghaffari, Z. Jemai, & T. Tan, entitled "Impact of coordination on costs and carbone emissions for a two-echelon serial economic quantity problem" available online in European Journal of Operational Research (CNRS 1 - FNEGE 1).
Coordination in supply chains consists in aligning
the decisions made by several echelons to reach a globally optimal
solution called the centralized solution, and to share the benefits
among the actors. This concept has been studied widely from a cost
optimization perspective but coordination is also proposed by
practitioners and academics as a solution to reduce carbon emissions.
This article compares the costs and carbon emissions resulting from a
non-coordinated two-echelon serial economic order quantity model to that
of the centralized solution. Our model accounts for transportation and
inventory related costs and emissions and we consider vehicle
capacities. We derive new results to solve the problem in the
non-coordinated and in the centralized cases. We provide sufficient
conditions ensuring that coordination enables reducing both costs and
emissions and we show that these conditions are satisfied in many
applications. On the other hand, we also identify situations for which
coordination leads to an increase in emissions and we provide sufficient
conditions. In such situations, we additionally show how to obtain a
solution decreasing both costs and carbon emissions. We use
multiobjective optimization to identify all these solutions and we
provide a series of insights.
Contact : Yann Bouchery