Simulation-Based Assessment of Hyperconnected Megacity Parcel Logistics

Sara Kaboudvand () and Benoit Montreuil
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Sara Kaboudvand: Physical Internet Center, School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, GA 30332, USA
Benoit Montreuil: Physical Internet Center, School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, GA 30332, USA

Logistics, 2024, vol. 8, issue 3, 1-32

Abstract: Background: The concept of Hyperconnected Megacity Parcel Logistics (HMPL) was introduced in 2018 and aims to enhance the efficiency, responsiveness, resilience, and sustainability of parcel movements in megacities. However, evaluating such fundamental solutions presents challenges and requires a comprehensive understanding of all stakeholders and decisions involved. Methods: This study introduces a discrete-event agent-based simulation platform that encompasses critical stakeholders and addresses various levels of decision-making. This platform provides an opportunity to evaluate key decisions within an HMPL structure. Results: To demonstrate the capability of the simulator, we assess the impact of package routing and consolidation strategies facilitated by HMPL compared to traditional practices. Preliminary findings suggest that increased interconnection among nodes in HMPL reduces transit times, thereby enabling tighter customer delivery services. However, examining different consolidation heuristics reveals potential trade-offs between handling and shipping costs under fixed shipment schedules, prompting further investigation into dynamic shipment services. Conclusions: The findings of this study suggest that the benefits of innovative approaches in a complex environment, such as parcel logistics, cannot be evaluated in isolation from other decisions. Accurate assessment of the ultimate outcomes and underlying trade-offs requires multi-faceted models that incorporate all key variables.

Keywords: hyperconnected megacity parcel logistics; agent-based simulation; containerized consolidation; parcel routing (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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