Integration and consolidation in air freight shipment planning: An economic and environmental perspective

Measuring carbon footprint and controlling carbon emissions across a supply chain have gained considerable attention. This study investigates the effects of carbon emissions within the framework of air freight integrator shipment planning, with integration and consolidation. A mixed 0–1 Linear Programming (LP) model is formulated to examine the effects of operational adjustments on carbon emissions and cost performance, as well as the effects of carbon emissions regulations on operational decisions. Sensitivity analysis is performed to examine different carbon emissions policies and operational environments. Reducing carbon emissions through operational adjustments is feasible at the expense of some increase in cost. Thus, reducing carbon emissions may be considered an alternative or a supplement to more costly carbon-reducing technologies. Policies implemented to control carbon emissions can affect operational decisions when carbon tax/price is high enough.