Logistics Hub and Route Optimization in the Physical Internet Paradigm

Hisatoshi Naganawa, Enna Hirata (), Nailah Firdausiyah and Russell G. Thompson
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Hisatoshi Naganawa: Faculty of Oceanology, Kobe University, Kobe 658-0022, Japan
Enna Hirata: Graduate School of Maritime Sciences, Kobe University, Higashinada-ku, Kobe 658-0022, Japan
Nailah Firdausiyah: Faculty of Engineering, the University of Brawijaya, Malang 65145, Indonesia
Russell G. Thompson: Department of Infrastructure Engineering, the University of Melbourne, Parkville 4148, Australia

Logistics, 2024, vol. 8, issue 2, 1-18

Abstract: Background: The global logistics industry is facing looming challenges related to labor shortages and low-efficiency problems due to the lack of logistics facilities and resources, resulting in increased logistics delays. The Physical Internet is seen as a way to take logistics into the next generation of transformation. This research proposes a Physical Internet-enabled system that allows multiple companies to efficiently share warehouses and trucks to achieve operational efficiency and reduce CO 2 emissions. Methods: We propose a novel demography-weighted combinatorial optimization model utilizing a genetic algorithm and the Lin–Kernighan heuristic. The model is tested with real data simulations to evaluate its performance. Results: The results show that compared to the existing model presented in a previous study, our proposed model improves location optimality and distributive routing efficiency and reduces CO 2 emissions by 54%. Conclusions: By providing a well-founded novel model, this research makes an important contribution to the implementation of the Physical Internet by computing optimal logistics hubs and routes as well as providing a solution to cut CO 2 emissions by half.

Keywords: physical internet; transport route optimization; logistics hubs; genetic algorithm; Lin–Kernighan heuristic; CO 2 emission reduction (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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