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Carbon management for sourcing and logistics

  • US 8,606,621 B2
  • Filed: 09/14/2012
  • Issued: 12/10/2013
  • Est. Priority Date: 11/26/2008
  • Status: Expired due to Fees
First Claim
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1. A method of carbon management for sourcing and logistics, comprising:

  • quantifying, by a computer, a cost, a service and a carbon impact of one or more logistics policies relating to a manufacturing process;

    minimizing, by the computer, said cost and carbon impact using a defined optimization equation to determine a combination of a multitude of components relating to the shipment of the product components from the suppliers to the assembly plant, said multitude of components including a first component representing a transportation cost for shipping the product components from the suppliers to the assembly plant, a second component representing an inventory cost and a third component representing a carbon cost for carbon emissions from inbound transportation activities of the shipping the product components from the suppliers to the assembly plant, said third component including a carbon price per mile-ton transported for transporting the product components from the suppliers to the assembly plant, said carbon price per mile-ton transported being based on a specified carbon emission factor and a specified carbon price per ton of emission; and

    wherein;

    the using the defined optimization equation includes using the defined optimization equation to obtain a specified order frequency for ordering parts from the suppliers.

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