Inventory routing optimization for pharmaceutical cold chain logistics from economic and environmental perspective

The effectiveness and efficiency gains or losses in logistics are directly influenced by inventory control and distribution management, which have a significant impact on the synchronisation and overall performance of the supply chain. This paper presents one of the initial studies that introduces the inventory routing problem within a two-tier pharmaceutical cold chain logistics network, considering economic, environmental and social criteria. The model takes into account real-life characteristics such as uncertain demand, carbon emissions, and service level. To implement this model in practice, a comparative analysis is conducted between sequential decision-making and integrated decision-making approaches. Additionally, sensitivity analysis is performed on inventory boundaries and carbon-trade price using Python and Gurobi. The results offer valuable insights for optimising operational and tactical performance in pharmaceutical cold chain logistics management.