The economic and environmental performance of distribution networks: A case study from the petrochemical industry

Designing a company's distribution network is a challenging task that requires the consideration of different aspects. In this respect, especially trade-offs between, for example, operational costs and customer service are the focus of the companies' attention. However,
growing concerns of governments and customers about environmental protection have raised awareness towards the environmental impact of operations. Activities associated with the distribution of products, i.e. transportation and warehousing, are not yet subject to strict
environmental regulations, but this situation is expected to change soon. Companies must, therefore, start to concentrate not only on economic but also on environmental aspects in the
design of their supply chain. Based on a case study from the petrochemical industry, this paper presents a way to combine both, economic as well as environmental criteria, when evaluating (strategic) distribution network design decisions. The results show a trade-off between total
(distribution) costs and transport carbon emissions.