Evaluating the Environmental Impact of Inbound Logistics in Automotive Assembly Line: A System Dynamics Approach

This paper focuses the viability of green logistics based on Shipment Consolidation (SCL) policy in automotive industry. Within this context, the SCL policy is a logistics strategy whereby many small shipments are combined into a few larger loads. This research involves a case study of an actual automotive assembly line. The spotlight is on the inbound and outbound logistics in an attempt to reduce the carbon dioxide (CO2) emissions on the environment. Based on the data collected from the assembly line a System Dynamics (SD) simulation model was created. The inbound logistics shipment policy is based on both time and quantity based model. And the outbound logistics is time based model shipment policy. The results of the SD model have shown that difficulty in the use of SCL based decisions on inventory due to the complexity and fragmented nature of automotive inventory. However; the model results indicated reduced vehicle emissions when transporting inventory. Therefore, reducing environmental implications caused by CO2 emissions.