Green dynamic multimodal logistics network design problem considering financing decisions: a case study of cement...

Area of Science:

• Operations Research
• Supply Chain Management
• Environmental Science

Background:

• Logistics networks are critical for supply chain sustainability.
• Balancing economic costs with environmental impact is a key challenge.
• Existing models often lack integrated financial and environmental considerations.

Purpose of the Study:

• To develop a multi-objective mixed integer linear programming model for designing sustainable multimodal logistics networks.
• To incorporate both total cost minimization and total environmental impact minimization.
• To consider budget constraints and financing decisions for facility construction.

Main Methods:

• A bi-objective mathematical model was formulated.
• Environmental life cycle assessment was integrated to quantify environmental impacts.
• The augmented epsilon-constraint method was applied to solve the multi-objective problem.
• A case study of a cement multimodal rail-road logistics network was used for computational analysis.

Main Results:

• The multi-period optimization model influences multimodal terminal location and construction timelines.
• The model enhances the operational efficiency of logistics terminals.
• Decision-maker preferences and the emphasis on environmental objectives significantly shape the transportation network topology.

Conclusions:

• The proposed model provides a robust framework for designing sustainable and cost-effective multimodal logistics networks.
• Integrating financial and environmental objectives leads to more informed and efficient logistics network design.
• The model's flexibility allows for adaptation to different decision-maker priorities and environmental considerations.