Analysis and Reduction of CO2 Emissions and Costs Associated to Inventory Replenishment Strategies with Uncertain Demand
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Universidad Popular Autónoma del Estado de Puebla A.C., 17 Sur 901, Barrio de Santiago, 72410, Puebla, Pue. México
Submission date: 2020-01-10
Final revision date: 2020-03-05
Acceptance date: 2020-03-07
Online publication date: 2020-05-22
Publication date: 2020-08-05
Corresponding author
Santiago-Omar Caballero-Morales   

Postgraduate Department of Logistics and Supply Chain Management, Universidad Popular Autonoma del Estado de Puebla A.C., Mexico
Pol. J. Environ. Stud. 2020;29(6):3997-4005
The world supply chain highly depends on air, sea and land transportation, which is a main source of greenhouse gas (GHG) emissions such as CO2. While lean business strategies are focused on improving inventory turnover through the supply chain, this can increase transportation and thus, increase GHG emissions. Particularly to reduce these emissions, and improve energy generation/consumption and sustainability, governments have incorporated energy taxes associated to CO2 on transportation. However, these taxes only increase operational costs and do not imply a reduction in emissions. In this work an integrated inventory – transportation model is developed to support the reduction of CO2 emissions and operational costs considering inventory management and route planning under uncertain demand. Based on real inventory and geographical data, the results of the model support evidence that inventory management can lead to reduce operational costs by 10.22% and CO2 emissions by 36.58%. Additional reductions, up to 12.77% and 43.02% respectively, can be obtained if route planning is integrated. This can support companies to visualize how their operations contribute to CO2 emissions and develop internal strategies to reduce them in accordance to their operational costs.
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