Distribution logistics network optimization with a multi-distribution center considering carbon emission: A case study in the petrochemical industry in Thailand
Issued Date
2025-01-01
Resource Type
eISSN
18770509
Scopus ID
2-s2.0-105000477683
Journal Title
Procedia Computer Science
Volume
253
Start Page
237
End Page
246
Rights Holder(s)
SCOPUS
Bibliographic Citation
Procedia Computer Science Vol.253 (2025) , 237-246
Suggested Citation
Chanpuypetch W., Kritchanchai D., Niemsakul S., Niemsakul J. Distribution logistics network optimization with a multi-distribution center considering carbon emission: A case study in the petrochemical industry in Thailand. Procedia Computer Science Vol.253 (2025) , 237-246. 246. doi:10.1016/j.procs.2025.01.087 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/108616
Title
Distribution logistics network optimization with a multi-distribution center considering carbon emission: A case study in the petrochemical industry in Thailand
Author's Affiliation
Corresponding Author(s)
Other Contributor(s)
Abstract
The study explores the optimization of the distribution network for a petrochemical business in Thailand, facing intense competition and market share loss to foreign competitors. Aiming to expand its domestic market, the business seeks to enhance its distribution network by adding a new distribution center (DC). Given the industry's environmental impact concerns, the study also focuses on reducing the environmental footprint of its supply chain and logistics activities. Despite extensive research on distribution network optimization, there remains a gap in understanding the integrated approach that simultaneously address economic efficiency, customer responsiveness, and environmental sustainability within the petrochemical sector in Thailand. This research proposes various scenarios for the distribution network, considering candidate DC locations based on current customer distributions, particularly in the Bangkok Metropolitan Area and Laem Chabang (LCB) port, along with potential hinterland arears. The analysis evaluates key performance metrics, including responsiveness, economic efficiency, and environmental impact. The findings indicate that the optimal scenario involves operating two DCs: the existing DC and a new DC in Samut Prakarn Province, significantly improving customer responsiveness. However, the results reveal that cost reduction does not directly correlate with decreased GHG emissions. The study underscores the need for businesses to define clear objectives, such as cost reduction, improved customer service, market expansion, or environmental sustainability, before redesigning distribution networks. A comprehensive evaluation of criteria, including social, opportunities, infrastructure, accessibility, resilience, and cybersecurity, is essential for informed decision-making, leading to improved cost efficiency, customer service, and operational agility.
