Location Routing Problem with Consideration of CO2 Emissions Cost: A Case Study

Abstract

Location and routing are the main critical problems investigated in a logistic. Location-Routing Problem (LRP) involves determining the location of facilities and vehicle routes to supply customer's demands. Determination of depots as distribution centers is one of the problems in LRP.  In LRP, carbon emissions need to be considered because these problems cause global warming and climate change. In this paper, a new mathematical model for LRP considering CO2 emissions minimization is proposed. This study developed a new  Mixed Integer Linear Programming (MILP)  model for LRP with time windows and considered the environmental impacts.  Finally, a case study was conducted in the province of Central Java, Indonesia. In this case study, there are three depot candidates. The study results indicated that using this method in existing conditions and constraints provides a more optimal solution than the company's actual route. A sensitivity analysis was also carried out in this case study.