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How the environmental impact affects the design of logistics networks based on cost minimization

Abstract:

The degree of centralization of the logistics network is one of the important strategic decisions to take. This issue has often been studied but mainly from a cost minimization focus. This research studies the influence of incorporating the environmental impact in logistics network design models, comparing the results with those obtained considering cost minimization only. A fuzzy biobjective optimization model is used to carry out a number of experiments. By weighting the relative importance of the two objectives, the differences with respect to the base cost minimization solution can be ascertained. Our results show that in general more material is moved through warehouses when the environmental impact is considered and more decentralized facilities are opened.