Original Research

Minimising negative externalities cost using 0-1 mixed integer linear programming model in e-commerce environment

Akyene Tetteh, Sarah Dsane-Nsor
Journal of Transport and Supply Chain Management | Vol 11 | a272 | DOI: https://doi.org/10.4102/jtscm.v11i0.272 | © 2017 Akyene Tetteh, Sarah Dsane-Nsor | This work is licensed under CC Attribution 4.0
Submitted: 19 September 2016 | Published: 25 April 2017

About the author(s)

Akyene Tetteh, Department of Management Studies, University of Mines and Technology, Ghana
Sarah Dsane-Nsor, Department of Computer Science, Koforidua Polytechnic, Ghana


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Abstract

Background: Although the Internet boosts business profitability, without certain activities like efficient transportation, scheduling, products ordered via the Internet may reach their destination very late. The environmental problems (vehicle part disposal, carbon monoxide [CO], nitrogen oxide [NOx] and hydrocarbons [HC]) associated with transportation are mostly not accounted for by industries.

Objectives: The main objective of this article is to minimising negative externalities cost in e-commerce environments.

Method: The 0-1 mixed integer linear programming (0-1 MILP) model was used to model the problem statement. The result was further analysed using the externality percentage impact factor (EPIF).

Results: The simulation results suggest that (1) The mode of ordering refined petroleum products does not impact on the cost of distribution, (2) an increase in private cost is directly proportional to the externality cost, (3) externality cost is largely controlled by the government and number of vehicles used in the distribution and this is in no way influenced by the mode of request (i.e. Internet or otherwise) and (4) externality cost may be reduce by using more ecofriendly fuel system.


Keywords

e-commerce; negative externalities; 0-1MILP; refined petroleum product

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