Sustainability analysis in integrated inventory control and transportation systems

Abstract

Due to the importance of costs as well as environmental effects of logistical activities throughout supply chains, such as inventory holding, freight transportation, and warehousing activities, this dissertation models and analyzes four integrated inventory control and transportation problems that account for economic and environmental aspects of a supply chain agents related decisions. The first model presents an integrated inventory control and transportation problem in a single item deterministic demand setting. A supply chain agents inventory control and transportation mode selection problem is solved under carbon cap, carbon cap and trade, carbon cap and offset, and carbon tax regulations. The second model focuses on an integrated inventory control and transportation problem in a single item stochastic demand setting integrating environmental objectives into a continuous review inventory control system with considerations of two different transportation modes. The third model studies an integrated inventory control and transportation problem in a multi-item deterministic demand setting, in which, a decision making method is developed considering the economic and environmental objectives. In the fourth model, a multi-item stochastic demand consolidation policy is analyzed with the consideration of heterogeneous freight trucks for transportation. It is shown that the consolidation policy suggested can result in substantial economic as well as environmental benefits for the supply chain agents --Abstract, page iii

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