Title: Selecting the supply chain route: environmental aspects

Authors: Jyri Vilko; Hanna Alve; Risto Soukka; Jukka Hallikas

Addresses: Lappeenranta University of Technology, Skinnarilankatu 34, P.O. Box 20, Lappeenranta, 53851, Finland. ' Lappeenranta University of Technology, Skinnarilankatu 34, P.O. Box 20, Lappeenranta, 53851, Finland. ' Lappeenranta University of Technology, Skinnarilankatu 34, P.O. Box 20, Lappeenranta, 53851, Finland. ' Lappeenranta University of Technology, Skinnarilankatu 34, P.O. Box 20, Lappeenranta, 53851, Finland

Abstract: Given the general concern over the state of nature, environmental issues are of more significance in supply chains than previously. The routing of transportation chains is typically based on economic factors at the expense of ecological factors. The environmental impact and risks attributable to transportation are often not understood, and therefore taking them into account is challenging. In this paper we discuss the environmental effects and risks related to freight transportation, and suggest a method for assessing environmental factors in route selection. We applied the analytic hierarchy process (AHP) in considering the greener option in road and railway transportation, a combination yielding alternative routings that cause minimum environmental damage and risk in the case under investigation.

Keywords: supply chain management; SCM; route selection; green logistics; freight transport; environmental impact; environmental risk; risk assessment; Finland; vehicle routing; analytical hierarchy process; AHP; road transport; railway transport.

DOI: 10.1504/IJASM.2012.047655

International Journal of Agile Systems and Management, 2012 Vol.5 No.3, pp.276 - 296

Received: 05 Jul 2011
Accepted: 26 Jan 2012

Published online: 06 Jul 2012 *

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