Cachon, Gérard P. (2014). "Retail store density and the cost of greenhouse gas emissions." Flashcards
What is the paper investigating?
The paper is investigating how emissions can be reduced in the retail supply chain.
What are the reasons for retail supply chain network emissions?
- Store size
- Transportation vehicle fuel efficiency
- Load weight
- Distance travelled
And customer emission is also dependent on supply chain network shape
What are the problems?
The problem is first and foremost an effect of more stores.
- More operational costs for retailers
- More replenishment travel causes more retail emissions
- Closer to customer causing less customer emissions, and vice versa its a trade-off
- Few stores cause car culture which is a concern for urban planners as it increases emissions
What is the aim?
- Develop a model in which a retailer chooses the size, location and number of stress to serve a region of customers.
- Consequence: The retailer incurs cost for its physical space as well as costs that are proportional to the distance it travels to replenish its stores.
What is the theoretical framework of the study?
The retail store density problem combines an inventory model with TSP and k-median problem
K-median problem (Shows different scenarios of how long the customers need to travel to buy)
Modelled using the travelling salesman problem
Theory - Framework of the study (What is the reason for the optimal retail supply chain model?
3 objectives with the model:
- Minimize operating costs (ignoring emission levels)
- Minimize emissions (Opera
- Minimize total costs given an explicit price for carbon emissions. (If tax is imposed they want to include that what would the total cost be)
Contribution (How we can reduce emissions)
- Charging a price for carbon emissions
- Consider land regulations
- Or rely on technological improvements and behavioural changes
- Fuel efficiency for trucks has little effect (Improving consumer fuel efficiency is the best option)
