Please use this identifier to cite or link to this item: http://hdl.handle.net/10125/41315

Quantity and Location Decision of Fresh Food Distribution Centers for a Supermarket Chain under Carbon Policies

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Title: Quantity and Location Decision of Fresh Food Distribution Centers for a Supermarket Chain under Carbon Policies
Authors: Wang, Min
Gündüz, Halil Ibrahim
Herty, Michael
Zhao, Lindu
Keywords: Carbon policy
Distribution center
Fresh food
Location decision
Supermarket chain
Issue Date: 04 Jan 2017
Abstract: Supermarket chains handle frequent deliveries of fresh food to the stores, which have led to the non-ignorable high transportation cost. Then a question arises that is it possible to reduce cost by establishing more refrigerated distribution centers (DC)? To answer this question, on basis of data from a large supermarket chain in China, we analyze the decision making process to construct new sub DCs. A balance of the DC cost and the transportation cost is achieved to gain the optimal number and location of sub DCs. We also extend the model to situations with carbon policies (carbon tax policy and carbon cap-and-trade policy). The locations of sub DCs remain the same under carbon policies. Furthermore, a carbon tax policy does not change the number of sub DCs and only causes an increase in the total cost. Under a carbon cap-and-trade policy the optimal decision of the DC number is dependent on the carbon selling rule.
Pages/Duration: 10 pages
URI/DOI: http://hdl.handle.net/10125/41315
ISBN: 978-0-9981331-0-2
DOI: 10.24251/HICSS.2017.162
Rights: Attribution-NonCommercial-NoDerivatives 4.0 International
Appears in Collections:Intelligent Decision Support and Big Data for Logistics and Supply Chain Management Minitrack



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