Wholesalers to the Rescue! Rethinking the Distribution Network from a Sustainability Perspective.

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Summary:
An FMCG company that has optimized its product distribution from a cost perspective would like to re-examine its supply chain from an emissions perspective. Specifically, they are interested in exploring whether engaging wholesalers as 3PLs can minimize redundancies and reduce emissions. We use MILP and other modeling techniques to estimate emissions across their current supply chain, as well as present the cost and emissions tradeoffs of working with wholesalers. This analysis may serve as a theoretical basis for utilizing the wholesaler network in “emergency” situations, or as an input for future large-scale network optimization.