A mathematical model for freight -efficient land use planning

Abstract

This research develops the first analytical model to support Freight Efficient Land-Use (FELU) design and planning while explicitly considering the effects of land-use decisions on supply chains. To do so a facility location model with entropy maximization is developed. The model seeks to minimize social costs associated with supply chain activity. The formulation developed as part of this research is the first one that explicitly: (1) considers the effects of land-use decisions on supply chains, and specifically, on the delivery tour patterns emanating from distribution centers; and (2) seeks to minimize the total associated social costs. Currently, there are no methodologies that capture the interconnection between land-use location decisions and their impacts along the supply chain. Addressing this gap in the literature is critical considering the tremendous impacts land-use decisions have on the efficiency of both upstream and downstream supply chains. A case study of New York City is presented in which four different industry sectors are modeled. Optimal locations for building distribution centers are showed. The results from the model display how there is a constant tradeoff between being close to main attractors of cargo, how expensive the location cost is, and the operational cost of trucks. In addition, it is showed how by incorporating an environmental justice component into the model the selection of optimum locations for distribution centers changes. Ultimately, this research aims to improve land-use regional planning processes by means of fostering more compact supply chains—reducing Vehicles Miles Travelled (VMTs) to increase efficiency—as well as more sustainable economies in which efficiency, livability and environmental objectives go hand in hand.