The CO2 management decision problem in tactical sales planning of light commercial vehicle manufacturers in Europe

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In this paper, the question of how trade-offs between contribution margins and CO2 fleet emissions could be managed within tactical sales planning of light commercial vehicle manufacturers in the EU is addressed. We develop a planning framework to derive optimal sales plans from both an ecological and environmental perspective, considering constraints such as available production and logistics capacities as well as market demand. Based on the framework, we analyse how alternative sales plans on the level of models, variants, and equipment options with similar contribution margins can lead to very different outcomes with respect to CO2 fleet emissions and vice versa. The results of this study indicate that sales planning with a detailed view on CO2 emissions is essential to ensure profitability of light commercial vehicle manufacturers until zero emission vehicles achieve competitive contribution margins and substantial market shares. © 2024 Inderscience Publishers. All rights reserved.

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