Physical Internet-enabled customised furniture delivery in the metropolitan areas: digitalisation, optimisation and case study

Hao Luo, Siyu Tian and Xiang T. R. Kong

International Journal of Production Research, 2021, vol. 59, issue 7, 2193-2217

Abstract: This article proposes a Physical Internet-enabled customized furniture delivery system (PI-CFDS) with the following contributions. First, a set of PI-enabled smart logistics facilities was adopted to transform the conventional operations. A PI decision support platform was designed to deal with resource planning. Second, since the classical methods cannot be applied directly, we developed a new approach, including both mathematical modelling and algorithm design. The optimal planning decision maximizes the shipper’s profits while providing a stable income for the carriers. Third, the proposed solution was verified via a real-life case study. The effects of geographical, cost, and demand parameters were also analyzed. Our results show that the PI-CFDS solution has advantageous over the traditional solution when considering the dispersed distribution of customer depots. We found that when the dispersion of customer locations increases, the fixed cost of vehicles increases, and the salary difference between drivers and movers increases; in this situation, the advantages of the PI-CFDS solution are more apparent. However, compared with the traditional solution, the PI-CFDS solution is more sensitive to the rise of fuel prices and the stability of demand. The results yield substantial insights and facilitate daily decision-making for managers.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2020.1832271 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:59:y:2021:i:7:p:2193-2217

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2020.1832271

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().