Developing sustainable supply chains in regional Australia considering demand uncertainty, government subsidies and carbon tax regulation

Developing sustainable supply chains in regional Australia considering demand uncertainty, government subsidies and carbon tax regulation

There is a tremendous opportunity to implement sustainable supply chain management practices in terms of logistics, operations, and transport network in regional Australia. Unfortunately, this opportunity has not been investigated and there is a lack of academic studies in this body of knowledge. This thesis is made up by three related, but independent models designed to efficiently distribute products from a regional hub to other part of the country. This research aims to develop efficient and sustainable supply chain practices to deliver regional Australian products across the country and overseas. As the airports of most Australian capital cities are over-crowded while many regional airports are under-utilised, the first model examines the ways to promote the use of regional airports. Australia is a significant food producer and the agricultural products are primarily produced in regional areas. In the other two models, we focus on the distribution of perishable products from regional Australia.

The first model presented in Chapter 2 outlines how different government subsidy schemes can be used to influence airfreight distributions that favour the use of regional airports and promote regional economic development. The model simultaneously considers time-window and release-time constraints as well as the heterogeneous fleet for ground distribution where fuel consumption is subject to load, travel distance, speed and vehicle characteristics. A real-world case study in the state of Queensland, Australia is used to demonstrate the application of the model. The results suggest that the regional airport's advantages can be promoted with suitable subsidy programs and the logistics costs can be reduced by using the regional airport from the industry’s perspective.

The second model presented in Chapter 3 examines the impacts of carbon emissions arising from the storage and transportation of perishable products on logistical decisions in the cold supply chain considering carbon tax regulation and uncertain demand. The problem is formulated as a two-stage stochastic programming model where Monte Carlo approach is used to generate scenarios. The aim of the model is to determine optimal replenishment policies and transportation schedules to minimise both operational and emissions costs. A matheuristic algorithm based on the Iterated Local Search (ILS) algorithm and a mixed integer programming is developed to solve the problem in realistic sizes. The proposed model was implemented in a real-world
case study in the state of Queensland, Australia to demonstrate the application of the model. The results highlight that a higher emissions price does not always contribute to the efficiency of the cold supply chain system.

The third model presented in Chapter 4 investigates the impacts of two different transport modes - road and rail - on the efficiency and sustainability of transport network to deliver meat and livestock from regional Queensland to large cities and seaports. The model is formulated as a mixed-integer linear programming model that considers road traffic congestions, animal welfare, quality of meat products and environmental impacts from fuel consumption of different transport modes. The aim of the model is to determine an optimal network configuration where each leg of journey is conducted by the most reliable, sustainable and efficient transport mode. The results indicate that it would be possible to significantly decrease total cost if a road-rail intermodal network is used. Considering animal welfare, product quality and traffic congestion can have a significant effect on the decisions related to transport mode selection.