An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact Consideration

This paper proposes a new model of simultaneous optimization of three-level logistics decisions, for logistics authorities, logistics operators, and logistics users, for regional logistics network with environmental impact consideration. The proposed model addresses the interaction among the three l...

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Main Authors: Dezhi Zhang, Shuangyan Li, Jin Qin
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2014/542548
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author Dezhi Zhang
Shuangyan Li
Jin Qin
author_facet Dezhi Zhang
Shuangyan Li
Jin Qin
author_sort Dezhi Zhang
collection DOAJ
description This paper proposes a new model of simultaneous optimization of three-level logistics decisions, for logistics authorities, logistics operators, and logistics users, for regional logistics network with environmental impact consideration. The proposed model addresses the interaction among the three logistics players in a complete competitive logistics service market with CO2 emission charges. We also explicitly incorporate the impacts of the scale economics of the logistics park and the logistics users’ demand elasticity into the model. The logistics authorities aim to maximize the total social welfare of the system, considering the demand of green logistics development by two different methods: optimal location of logistics nodes and charging a CO2 emission tax. Logistics operators are assumed to compete with logistics service fare and frequency, while logistics users minimize their own perceived logistics disutility given logistics operators’ service fare and frequency. A heuristic algorithm based on the multinomial logit model is presented for the three-level decision model, and a numerical example is given to illustrate the above optimal model and its algorithm. The proposed model provides a useful tool for modeling competitive logistics services and evaluating logistics policies at the strategic level.
format Article
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institution Kabale University
issn 2356-6140
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language English
publishDate 2014-01-01
publisher Wiley
record_format Article
series The Scientific World Journal
spelling doaj-art-e793f9d193b24013a3058dfafa45c0f82025-02-03T01:20:57ZengWileyThe Scientific World Journal2356-61401537-744X2014-01-01201410.1155/2014/542548542548An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact ConsiderationDezhi Zhang0Shuangyan Li1Jin Qin2School of Traffic & Transportation Engineering, Central South University, Changsha, Hunan 410075, ChinaCollege of Transportation and Logistics, Central South University of Forestry and Technology, Changsha, Hunan 410004, ChinaSchool of Traffic & Transportation Engineering, Central South University, Changsha, Hunan 410075, ChinaThis paper proposes a new model of simultaneous optimization of three-level logistics decisions, for logistics authorities, logistics operators, and logistics users, for regional logistics network with environmental impact consideration. The proposed model addresses the interaction among the three logistics players in a complete competitive logistics service market with CO2 emission charges. We also explicitly incorporate the impacts of the scale economics of the logistics park and the logistics users’ demand elasticity into the model. The logistics authorities aim to maximize the total social welfare of the system, considering the demand of green logistics development by two different methods: optimal location of logistics nodes and charging a CO2 emission tax. Logistics operators are assumed to compete with logistics service fare and frequency, while logistics users minimize their own perceived logistics disutility given logistics operators’ service fare and frequency. A heuristic algorithm based on the multinomial logit model is presented for the three-level decision model, and a numerical example is given to illustrate the above optimal model and its algorithm. The proposed model provides a useful tool for modeling competitive logistics services and evaluating logistics policies at the strategic level.http://dx.doi.org/10.1155/2014/542548
spellingShingle Dezhi Zhang
Shuangyan Li
Jin Qin
An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact Consideration
The Scientific World Journal
title An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact Consideration
title_full An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact Consideration
title_fullStr An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact Consideration
title_full_unstemmed An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact Consideration
title_short An Optimal Hierarchical Decision Model for a Regional Logistics Network with Environmental Impact Consideration
title_sort optimal hierarchical decision model for a regional logistics network with environmental impact consideration
url http://dx.doi.org/10.1155/2014/542548
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