Deployment of Sustainable Logistics Optimization Incorporated with Modal Shift and Emission Trading on Carbon Dioxide

Abstract

This chapter discusses a green logistics optimization problem associated with production method of manufacturers and green attitude of consumers. A novel hierarchical method is developed for a three-echelon logistics network to optimize the production methods with different structures regarding cost and emission of carbon dioxide (CO 2) at production sites, the available collection center, the paths between members of the logistics network and circular routes over consumers. First, the problem is aimed at minimizing either the total cost or CO 2 emission through controlling prone and aversion behaviors on sustainability of each member．Then, as a promising glue to integrate these individual problems and to evaluate them on the same basis, an economic mechanism known as the emission trading rate on CO 2 is introduced. Furthermore, to discuss the sustainability in a broader logistics system, the modal shift in transportation is noted. To show the significance of the proposed approach, a case study is provided to explore some prospects for green logistics in whole society based on the computational results.