Benefits of Proactive Transshipments for an Automotive Manufacturer Under Emission Constraints

Abstract

The high number of transports in industry causes a significant proportion of the emissions that need to be reduced regarding global warming. A part of the transports is caused by lateral transshipments, which occur when parts are distributed among different locations within one echelon for various reasons. To be able to reduce the number of transports, proactive transshipments can be used. In proactive transshipments, parts are transshipped at predetermined points in time before their demand occurs. In the scientific literature, the consideration of emissions, as well as a differentiation of vehicle types, are neglected in planning models to proactive transshipments. Our planning model adopts emission limits and provides a detailed consideration of different vehicle types for the execution of transshipments. We decide about the types and amount of vehicles used between locations in different periods. An illustrative example is presented, comparing the costs and emissions between proactive and reactive transshipments with and without emission limits. We find that emission limits can influence vehicle type selection and the products to be transshipped during proactive transshipments.