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Green Network Design and Facility Location

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Sustainable Supply Chains

Part of the book series: Springer Series in Supply Chain Management ((SSSCM,volume 23))

Abstract

Green location models are an important alternative to reduce CO2 emissions in logistics, i.e., transportation, which is one of the main contributing factors to global carbon emissions and the sector with the highest growth. In this chapter, we discuss green facility location problems, i.e., a variant of facility location problems that specifically include the transport carbon emissions in the formulation. We review some fundamental location models (both analytical and discrete) and present managerial implications on the comparison between decisions obtained by a cost minimization and by green facility location models. Our results show that for the context of urban deliveries, cost minimization solutions tend to locate facilities closer to high-demand customers, while CO2 emission minimization solutions tend to locate facilities closer to customers that have truck accessibility constraints. In addition, we illustrate the disadvantages of using aggregate estimation models in green facility location models (i.e., assuming the same structure), for example, in companies interested in intermodal transportation, using aggregate models may result in an increase in CO2 emissions since the difference in parameters for transportation cost and CO2 emissions can lead to a completely different set of solutions for both objective functions.

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Author information

Authors and Affiliations

  1. Center for Transportation and Logistics, Massachusetts Institute of Technology, Cambridge, MA, USA

    Josué C. Velázquez-Martínez

  2. School of Economics and Management, Tilburg University, Tilburg, Netherlands

    Jan C. Fransoo

Authors
  1. Josué C. Velázquez-Martínez
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  2. Jan C. Fransoo
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Corresponding author

Correspondence to Josué C. Velázquez-Martínez .

Editor information

Editors and Affiliations

  1. Kedge Business School, Talence, France

    Yann Bouchery

  2. Anderson School of Management, University of California Los Angeles, Los Angeles, CA, USA

    Charles J. Corbett

  3. School of Economics and Management, Tilburg University, Tilburg, The Netherlands

    Jan C. Fransoo

  4. Department of Business Administration, University of Zurich, Zurich, Switzerland

    Tarkan Tan

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Velázquez-Martínez, J.C., Fransoo, J.C. (2024). Green Network Design and Facility Location. In: Bouchery, Y., Corbett, C.J., Fransoo, J.C., Tan, T. (eds) Sustainable Supply Chains. Springer Series in Supply Chain Management, vol 23. Springer, Cham. https://doi.org/10.1007/978-3-031-45565-0_7

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