Assessing the environmental impact of integrated inventory and warehouse management

Abstract

This is the accepted version of the paper.This version of the publication may differ from the final published version. Abstract: There has been considerable research on the environmental impact of supply chains but most of this has concentrated on the transport elements. The environmental impact of warehousing has received relatively little attention except within the context of distribution networks. A high proportion of total warehouse emissions emanate from heating, cooling, air conditioning and lighting and these aspects are largely related to warehouse size. This in turn is greatly influenced by inventory management, affecting stockholding levels, and warehouse design, affecting the footprint required for holding a given amount of stock. Other emissions, such as those caused by material handling equipment, are closely related to warehouse throughput and equipment choice. There is a substantial gap in the literature regarding this interaction between inventory and warehouse management and its environmental impact. The purpose of this paper is to contribute to filling this gap. Therefore, an integrated simulation model has been built to examine this interaction and the results highlight the key effects of inventory management on warehouse-related greenhouse gas emissions. In particular, it is found that decisions on supply lead times, reorder quantities, and storage equipment all have an impact on costs and emissions and therefore this integrated approach will inform practical decision making. Additionally, it is intended that the paper provides a framework for further research in this important area. Permanent repository link

Environmental impact of warehousing: a scenario analysis for the United States

“…The systematic assessment of CO2 emissions caused by warehousing activities is based on a set of parameters and aggregates, (see Figure 3 and Fichtinger et al 2015) determining overall energy consumption that is translated into carbon dioxide emissions. The presented methodology thus takes (forecasted) overall warehouse floor space as input that directly affects area-related energy consumption for heating, ventilation and air conditioning (HVAC), lighting and fixed material handling equipment (FMHE) such as steady conveyors.…”

“…Fekete et al (2014) Energy usage in material handling Proposes an approach for energy monitoring in material handling processes considering technological, organisational and economic perspectives that can be sued for the collection of energy data in warehouses. Fichtinger et al (2015) Integrated green inventory and warehouse management Presents a framework for the assessment of warehouse emissions in an integrated model for warehouse and inventory planning. Using simulation, warehouse emissions by end-use category for three different warehouse types and sourcing scenarios are derived.…”

“…The following section presents a structured approach adapted from Fichtinger et al (2015) for the systematic assessment of warehouse-related emissions. Whilst Fichtinger et al (2015) use a customer-oriented approach for analysing emissions based on a green-field scenario, i.e.…”

“…Whilst Fichtinger et al (2015) use a customer-oriented approach for analysing emissions based on a green-field scenario, i.e. their analysis is built upon a given customer demand that determines the ideal warehouse size, the present work is based on brown-filed scenario with the actual warehouse size.…”

“…One of the most significant categories of supply chain emissions, besides transport, is warehousing including material handling in logistics buildings. The environmental impact of warehouses due to heating, cooling, lighting and material handling, however, has largely been overlooked in the literature, with only few notable exceptions (e.g., Dhooma and Baker, 2012;Fichtinger et al, 2015). Nevertheless, carbon emissions caused by material handling activities in logistics buildings, comprising warehouses and sortation facilities, are significant and account for 13% of overall supply chain emissions (WEF, 2009).…”