Using simulation to support sustainable logistical decision making in complex supply chains

Across the European Economic Area (EEA) more goods are being transported over longer distances more frequently than ever before. As a result, Greenhouse Gas (GHG) emissions from the transport sector increased by 24% between 1990 and 2003 for the EEA - 32 countries. The objective of this paper is to highlight the current situation for freight transport by road and proposes a simulation based tool to assist more environmental sustainable supply chain decision making. GHG emissions, energy demand and costs in freight transport are increasing. Across the EEA, GHG emissions from most sectors (energy supply, industry, agriculture, waste management) decreased between 1990 and 2004, however emissions from transport increased. In Ireland, there has been a 160% increase in GHG emissions from the transport sector in the period 1990 to 2005. With energy use in transport now 99% dependant on imported oil, sustainability in logistical operations is a concern for the Irish economy. The paper will focus on inefficiencies in modern Supply Chain (SC) design and show how using simulation can aid decision makers in choosing more environmentally friendly SC options. A simulation tool to aid decision makers to choose more sustainable options will be proposed, and preliminary results discussed.