Department of Economics and Business Economics

Transportation Costs and Carbon Emissions in a Vendor Managed Inventory Situation

Research output: Contribution to book/anthology/report/proceedingArticle in proceedingsResearch

Recently, there has been much focus on carbon emissions and fuel consumption from road transport. In this paper, we consider a vendor deciding on the degree to which deliveries to geographically dispersed retailers should be consolidated. The vendor can consolidate shipments over time and deliver infrequently or deliver to many retailers simultaneously. We adapt models for determining the vendor’s cost minimizing strategy and for computing emissions. We find that if the per km transportation costs increase, the vendor mainly selects smaller zones to avoid transportation, resulting in lower carbon emissions.
Original languageEnglish
Title of host publicationOperations research proceedings
EditorsDennis Huisman
Number of pages6
Publication year2014
ISBN (print)9783319070001
ISBN (Electronic)9783319070018
Publication statusPublished - 2014

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