A system dynamics model for green logistics in a supply chain of multiple suppliers, retailers and markets
by Abbas Al-Refaie; Dua'a Younes Abdelrahim
International Journal of Business Performance and Supply Chain Modelling (IJBPSCM), Vol. 12, No. 3, 2021

Abstract: This paper aims at developing a system dynamics (SD) model to analyse the effect of green transportation and logistics on the total transportation cost of forward supply chain (FSC) and the total amount of CO₂ emissions. The proposed green forward supply chain (GFSC) model considers multi-suppliers, retailers and markets, two types of suppliers (quick response and slow response), a single manufacturer, three retailers, and three markets. Based on SD model, the performance of GFSC was measured by CO₂ emissions and total transportation costs for two transportation modes; regular (fuel) and hybrid trucks. Based on simulation results, the retailer that contributed to largest transportation costs and CO₂ emissions was identified. Alternative green transport scenarios were proposed and then evaluated. Furthermore, a comparison between the performance of existing and suggested scenarios was conducted. Finally, sensitivity analysis was conducted to assess the impacts of model variables; CO₂ factor and fuel consumption. The results showed that the use of regular trucks resulted in large transportation costs and CO₂ emissions in FSC. In conclusion, planning engineers can utilise the proposed GFSC model in determining transport solutions that achieve green logistics system, cost-efficient supplier selection, and measuring performance of GFSC.

Online publication date: Mon, 04-Oct-2021

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