Physical Internet, conventional and hybrid logistic systems: a routing optimisation-based comparison using the Eastern Canada road network case study

Mehran Fazili, Uday Venkatadri, Pemberton Cyrus and Mahdi Tajbakhsh

International Journal of Production Research, 2017, vol. 55, issue 9, 2703-2730

Abstract: The Physical Internet (PI) logistics system is an innovative logistics concept that has been gathering a lot of attention lately. This system consists of open, modular and shared containers and transit hubs to move goods globally. The purpose of this paper is to compare the performance of PI with regard to the conventional (CO) logistics system in order to quantify the advantages and disadvantages of PI from a truck and driver routing perspective with an explicit constraint on maximum return time for drivers. The comparison presented in this work is carried out through Monte-Carlo simulation within a sequential three-phase optimisation framework. Based on our analysis, PI reduces driving distance (and time), GHG (greenhouse gas) emissions and the social cost of truck driving. On the other hand, it increases the number of container transfers within the PI logistics centres. This insight is a contribution of the paper and reinforces the current literature on PI. The other main contribution of the paper is a validation of the claim that the number of drivers who can go back home at the end of a work day remains consistently high in PI, regardless of the traffic level.

Date: 2017
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Citations: View citations in EconPapers (11)

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DOI: 10.1080/00207543.2017.1285075

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