Details of Research Outputs

In this research, we consider logistics outsourcing to reduce carbon footprints by cooperating with third-party logistics service providers. Logistics outsourcing takes use of Less-Than-Truckload (LTL) shipping, and a shipment may be transported for a fraction of the cost of hiring an entire truck and trailer for an exclusive shipment. Without reducing the frequency of inventory replenishment that could lead to higher inventory level, firms can utilize LTL shipping to lower the transportation cost via outsourcing and emissions accordingly. However, LTL shipping may cause longer lead-time than those delivered by firms’ own vehicles, as LTL transit times highly depend on the structure of the network of the third-party logistics provider (3PL) including terminals and connections. We develop analytical models to examine the effect of logistic outsourcing on emission reduction and associated cost.