Solving Transport Problems

7Green Reverse Logistics: Case of the Vehicle Routing Problem with Delivery and Collection Demands

This chapter discusses the developments in the area of the vehicle routing problem (VRP) and more specifically VRPs which feature both delivery and collection demands, and their relevance and contribution to the go green reverse logistics polices. This chapter initially elaborates on the VRP and its variants involved in reverse logistics, then highlights the significance and ecological relevance of the VRP delivery and collection models and provides information concerning freight transport CO₂ conversions and computations. Finally, this chapter describes green VRP models, showing the link between traditional and green VRP models and how principles from both could be combined in order to achieve better economic and environmental gains.

7.1. Introduction and significance

The discipline of logistics and supply chain management has seen a continuous and rapid development in recent years due to its importance in the economies of organizations and countries. Typically, most companies perceive the role of supply chain management as an activity that adds value to their markets; hence, it has become very significant to their strategic decision-making. Due to evolving customer demand, companies strive to achieve efficient delivery service without compromising the customer service quality and the profitability of the business. On the other hand, issues around the management of the operational ...