Transshipment model considering environmental cost using mixed integer linear programming: Beef distribution problem

Abstract

The operational research paper in the transportation model nowadays is heading to the environmental issue. One of the famous operational research models is transshipment. Transshipment is an expanded model of transportation, in each distribution center between the start to the destination point. In this research, the transshipment model is integrated into an environmental function. The challenge is to find the right shipment of each route from the start, distribution, and destination point considering the transportation cost and carbon emission. This research proposed a transshipment model by minimizing transportation and carbon emission cost using mixed–integer linear programming for model formulation. The solution searching used branch and bound method. This research analyzed the environmental objective function and constrain effect in the transshipment model. The model was tested in a beef distribution case study in Bogor, Indonesia that has eight source points, three distribution centers, and six destination points. The model was experimented using carbon emission limitation scenarios. The optimum result in source allocation, distribution and destination were different between the two scenarios. The carbon emission limitation affected carbon emission production and total cost.