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Strategic Evaluation of Environmental Trade-Off Solution in Logistics: A Multi Criteria Decision Making Approach
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
Department of Business Administration, International Hellenic University, Serres, Greece.
2024 (English)In: Disruptive Technologies and Optimization Towards Industry 4.0 Logistics / [ed] Athanasia Karakitsiou; Athanasios Migdalas; Panos M. Pardalos, Springer, 2024, Vol. 214, p. 201-226Chapter in book (Other academic)
Abstract [en]

The purpose of this paper is to propose a multi-criteria decision-making model capable of strategically evaluating environmental trade-offs during the logistics planning phase. The objective is to build an optimization model for route planning with a trade-off solution for three criteria; cost, emission and time. The proposed model is tested at Northvolt (NV), a Swedish start up producing lithium-ion batteries. The results obtained from the optimization model were based on an emission calculation framework and weights assigned to the three selected criteria by five decision makers. The analysis shows that increased costs do not have a clear correlation with reduced emissions or transportation time. It also demonstrates that transporting goods on sea would increase the transportation time but decrease the emissions. The conclusions of the study are that costs can be reduced by 8%, emissions by 6% and transportation time by 14%, compared to their current operations. Short-term recommendations address the need of being agile in the route planning and analyse each shipment individually where the weights of the criteria should be alternated depending on the status of the project. This requires increased communication with the installation team on site and negotiation of contractual rates from additional ports in Sweden. Long-term recommendations emphasize the importance of developing and using emission key performance indicators to set targets in combination with a strategy in order to steer daily operations.

Place, publisher, year, edition, pages
Springer, 2024. Vol. 214, p. 201-226
Series
Springer Optimization and Its Applications (SOIA), ISSN 1931-6836, E-ISSN 1931-6828 ; 214
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:ltu:diva-108946DOI: 10.1007/978-3-031-58919-5_7Scopus ID: 2-s2.0-85201420148OAI: oai:DiVA.org:ltu-108946DiVA, id: diva2:1893505
Note

ISBN for host publication: 978-3-031-58918-8, 978-3-031-58921-8, 978-3-031-58919-5

Available from: 2024-08-29 Created: 2024-08-29 Last updated: 2025-10-21Bibliographically approved

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