A multicriteria analysis for the green VRP: a case discussion for the distribution problem of a Spanish retailer

Abstract

This research presents the group of green vehicle routing problems with environmental costs translated into money versus production of noise, pollution and fuel consumption. This research is focused on multi-objective green logistics optimization. Optimality criteria are environmental costs: minimization of amount of money paid as externality cost for noise, pollution and costs of fuel versus minimization of noise, pollution and fuel consumption themselves. Some mixed integer programming formulations of multi-criteria vehicle routing problems have been considered. Mathematical models were formulated under assumption of existence of asymmetric distance-based costs and use of homogeneous fleet. The exact solution methods are applied for finding optimal solutions. The software used to solve these models is the CPLEX solver with AMPL programming language. The researchers were able to use real data from a Spanish company of groceries. Problems deal with green logistics for routes crossing the Spanish regions of Navarre, Basque Country and La Rioja. Analyses of obtained results could help logistics managers to lead the initiative in area of green logistics by saving money paid for environmental costs as well as direct cost of fuel and minimization of pollution and noise.