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The design of fast-moving consumer goods distribution networks, considering the trade-off between costs and sustainability

Weperen, Nina van (2024) The design of fast-moving consumer goods distribution networks, considering the trade-off between costs and sustainability.

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Abstract:The research delves into optimizing distribution networks for Fast-Moving Consumer Goods (FMCG) companies, considering the dual objectives of minimizing distribution costs and CO2 emissions. The study focuses on shared distribution networks and employs Facility Location Problems (FLP) to model the problem. Using the ϵ-constraint method, the trade-off between distribution costs and CO2 emissions is visualized through a Pareto front. Results indicate that reducing warehouses cuts costs but raises emissions, while more warehouses have the opposite effect. The study showcases how optimizing warehouse configurations can lead to significant reductions in CO2 emissions with manageable cost increments. Additionally, analyses of temperature control logistics scenarios and carbon pricing regulations are conducted to understand their impacts on the trade-off. The findings provide valuable insights for FMCG companies seeking to balance environmental concerns with distribution costs in their distribution networks.
Item Type:Essay (Master)
Clients:
Royal HaskoningDHV
Faculty:BMS: Behavioural, Management and Social Sciences
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:https://purl.utwente.nl/essays/103409
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