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Environmental considerations in supply chain decisions: Proposing a new methodology for locating cross-docking terminals considering CO2e emissions

Albers, Etiënne H.M. (2022) Environmental considerations in supply chain decisions: Proposing a new methodology for locating cross-docking terminals considering CO2e emissions.

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Abstract:Goal: The goal of this research is to propose and test a new methodology that considers the emission of CO2e during transportation in determining the locations of cross docking terminals in a supply network. Simultaneously, the research aims to show how clustering and the centre of gravity can be used when considering CO2e emissions in supply chain decisions. Design/Methodology/Approach: K-Means clustering is used to cluster suppliers based on geographical location. By applying the centre of gravity twice, the weight of supply and demand points are included. The amount of CO2e emitted is estimated using Proxio, following an activity-based approach. Findings: The methodology proposed suggests using four cross-docking terminals, being the lowest number of terminals with the highest effect. The CO2e emissions in the proposed network are 50.13% higher compared to the current situation where 8 cross-docking terminals are used. The result shows that the proposed method is not successful in the case of Scania. Consequently, Scania should not change their supply network accordingly. Instead, the organization should focus on the use of sustainable transportation in their current network and consider a more advanced method for analysing their entire supply network. Practical Implications: The research is limited by the fact that only the organizations own shipments are considered, resulting in sub-optimization. In addition, a continuous approach is used which may cause unrealistic locations for cross docking terminals. Originality/value: This paper is especially valuable for practitioners in the field of supply network design. Besides, it contributes to the literature by proposing and testing an alternative methodology to the hub location problem.
Item Type:Essay (Master)
Clients:
Scania Logistics Netherlands, Zwolle, Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:30 exact sciences in general, 54 computer science, 83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/91966
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