Article: Eco-logistics: environmental and economic implications of alternative fuel vehicle routing problem Journal: International Journal of Business Performance and Supply Chain Modelling (IJBPSCM) 2014 Vol.6 No.3/4 pp.276 - 297 Abstract: Alternative fuel vehicle (AFV) fleet adoption is an attractive mitigative measure to reduce environmental externalities from transportation activities of logistics. However, adequate economic and environmental attractions should be in place to encourage organisations to invest in AFVs. This paper introduces the alternative fuel vehicle routing problem (AFVRP), which is proposed to assist companies with an AFV fleet through both reducing the consumption level and optimising the utilisation of the alternative fuel. Distinguishing two dominant categories of AFVs as dedicated AFVs and bi-fuel vehicles, another extension of the problem as bi-fuel vehicle routing problem (BFVRP) is also studied. Experiments were run and the results indicated that for urban logistics networks a reduction by up to 35% in CO<SUB align="right"><SMALL>2</SMALL></SUB> emissions and by up to 16% in costs is possible by using an AFV fleet and the proposed methodology instead of gasoline vehicles and the conventional VRP with a simple distance minimisation objective. Inderscience Publishers - linking academia, business and industry through research

Title: Eco-logistics: environmental and economic implications of alternative fuel vehicle routing problem

Authors: Ramin Raeesi; Michael J. O'Sullivan

Addresses: Department of Industrial Management, Persian Gulf University, Bushehr, 75169, Iran ' Department of Engineering Science, University of Auckland, Auckland, 1142, New Zealand

Abstract: Alternative fuel vehicle (AFV) fleet adoption is an attractive mitigative measure to reduce environmental externalities from transportation activities of logistics. However, adequate economic and environmental attractions should be in place to encourage organisations to invest in AFVs. This paper introduces the alternative fuel vehicle routing problem (AFVRP), which is proposed to assist companies with an AFV fleet through both reducing the consumption level and optimising the utilisation of the alternative fuel. Distinguishing two dominant categories of AFVs as dedicated AFVs and bi-fuel vehicles, another extension of the problem as bi-fuel vehicle routing problem (BFVRP) is also studied. Experiments were run and the results indicated that for urban logistics networks a reduction by up to 35% in CO₂ emissions and by up to 16% in costs is possible by using an AFV fleet and the proposed methodology instead of gasoline vehicles and the conventional VRP with a simple distance minimisation objective.

Keywords: alternative fuel vehicles; AFVs; bi-fuel vehicles; vehicle routing problem; fuel consumption; environmental externalities; compressed natural gas; eco-logistics; emissions reduction; carbon dioxide; carbon emissions; CO2; greening; transport logistics; economic incentives; environmental incentives; green VRP; fleet management; urban logistics networks; fuel costs reduction.

DOI: 10.1504/IJBPSCM.2014.065271

International Journal of Business Performance and Supply Chain Modelling, 2014 Vol.6 No.3/4, pp.276 - 297

Received: 09 Jul 2013
Accepted: 25 Sep 2013
Published online: 31 Oct 2014 *

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Title: Eco-logistics: environmental and economic implications of alternative fuel vehicle routing problem

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