Integrated inventory control and transportation decisions under carbon emissions regulations: LTL vs. TL carriers

D Konur, B Schaefer - Transportation Research Part E: Logistics and …, 2014 - Elsevier
D Konur, B Schaefer
Transportation Research Part E: Logistics and Transportation Review, 2014Elsevier
This study analyzes an integrated inventory control and transportation planning problem
with carbon emissions regulations. We investigate the economic order quantity model with
less-than-truckload (LTL) and truckload (TL) transportation under carbon cap, cap and trade,
cap and offset, and taxing policies. We find the retailer's optimal order quantity under each
regulation with LTL and TL carriers. Analytical and numerical results comparing LTL and TL
carriers are documented. We illustrate that the retailer's carrier preference depends on …
Abstract
This study analyzes an integrated inventory control and transportation planning problem with carbon emissions regulations. We investigate the economic order quantity model with less-than-truckload (LTL) and truckload (TL) transportation under carbon cap, cap and trade, cap and offset, and taxing policies. We find the retailer’s optimal order quantity under each regulation with LTL and TL carriers. Analytical and numerical results comparing LTL and TL carriers are documented. We illustrate that the retailer’s carrier preference depends on regulation parameters. The tools provided enable analyzing the effects of regulations, transportation costs and emissions on the retailer’s costs and emissions with each carrier.
Elsevier
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