Development of an Eco-efficiency Distribution Model: A Case Study of a Danish Wholesaler

A decision model is presented to support selecting the best distribution to optimise earnings and minimise environmental impact. The model has been tested on a Danish wholesaler that wants to sell its goods on the Norwegian market. In this connection, they must therefore choose how the goods are to be distributed. Via the decision model, it is possible to choose the distribution and mode of transport they need for the individual markets, as it is not always the same modes of transport that are optimal for all markets. Thus, the model supports and shows that it is possible to optimise the company's earning capacity and minimise environmental impact by choosing the proper distribution. Furthermore, national requirements for reducing carbon can be expected to affect taxes and duties, which is why a sensitivity analysis has been prepared, which shows the effect of increasing carbon taxes on the contribution margin in the optimal modes of transport.