A methodology to minimize the environmental impact and the operating costs in the design and management of a multi-modal distribution network is presented. A bi-objective linear programming model is formulated and solved generating the Pareto Frontier and highlighting the trade-off conditions that make the system profitable with low environmental impact. The proposed model overcomes the widely adopted approaches focused, only, on the network cost minimization or, even, the optimization of a single network level. The adopted strategy is the Normalized Normal Constraint method able to generate a set of evenly spaced solutions on the Pareto Frontier. This approach is applied to the design and optimization of a distribution network in which a multi-modal transport is feasible. The distribution network consists of a set of producers, distribution centers and retailers, connected through a multi-modal network, to supply the market demand. The most effective shipping strategies are investigated and identified. The design of the network deals with the formalization of two objective functions: the first takes into account the operating and shipping costs, the latter quantifies the environmental impact in terms of CO2 equivalent emissions through the network. Each objective function is limited by a set of common constraints related to the market demand satisfaction and the production and distribution capacities. By the appliance of the Normalized Normal Constraint method the Pareto Frontier is determined allowing the identification of the best trade-off factors between low network costs and environmental impact. Such factors represent the set of optimal network configurations, optimizing both the network cost and environmental impact. Consequently, the final structure of the logistic network should be selected among the configurations that lie on the Pareto Frontier. Finally, the paper provides an economical valorization of the transport environmental impact showing the conditions in which the incomes due to the emission reduction can compensate the increment in the operating shipping costs, leading to global environmental savings.

Bi-objective optimization of environmental impact and cost in multi-modal distribution networks / Battini, Daria; Bortolini, Marco; Faccio, Maurizio; Gamberi, Mauro; Pilati, Francesco. - ELETTRONICO. - (2013), pp. 1-8. ((Intervento presentato al convegno International Conference on Production Research tenutosi a Iguassu Falls, Brazil nel 28 July - 1 August 2013.

Bi-objective optimization of environmental impact and cost in multi-modal distribution networks

Francesco Pilati
2013

Abstract

A methodology to minimize the environmental impact and the operating costs in the design and management of a multi-modal distribution network is presented. A bi-objective linear programming model is formulated and solved generating the Pareto Frontier and highlighting the trade-off conditions that make the system profitable with low environmental impact. The proposed model overcomes the widely adopted approaches focused, only, on the network cost minimization or, even, the optimization of a single network level. The adopted strategy is the Normalized Normal Constraint method able to generate a set of evenly spaced solutions on the Pareto Frontier. This approach is applied to the design and optimization of a distribution network in which a multi-modal transport is feasible. The distribution network consists of a set of producers, distribution centers and retailers, connected through a multi-modal network, to supply the market demand. The most effective shipping strategies are investigated and identified. The design of the network deals with the formalization of two objective functions: the first takes into account the operating and shipping costs, the latter quantifies the environmental impact in terms of CO2 equivalent emissions through the network. Each objective function is limited by a set of common constraints related to the market demand satisfaction and the production and distribution capacities. By the appliance of the Normalized Normal Constraint method the Pareto Frontier is determined allowing the identification of the best trade-off factors between low network costs and environmental impact. Such factors represent the set of optimal network configurations, optimizing both the network cost and environmental impact. Consequently, the final structure of the logistic network should be selected among the configurations that lie on the Pareto Frontier. Finally, the paper provides an economical valorization of the transport environmental impact showing the conditions in which the incomes due to the emission reduction can compensate the increment in the operating shipping costs, leading to global environmental savings.
International Conference on Production Research
-
-
9788588478473
Battini, Daria; Bortolini, Marco; Faccio, Maurizio; Gamberi, Mauro; Pilati, Francesco
Bi-objective optimization of environmental impact and cost in multi-modal distribution networks / Battini, Daria; Bortolini, Marco; Faccio, Maurizio; Gamberi, Mauro; Pilati, Francesco. - ELETTRONICO. - (2013), pp. 1-8. ((Intervento presentato al convegno International Conference on Production Research tenutosi a Iguassu Falls, Brazil nel 28 July - 1 August 2013.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11572/247950
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