Freight delivery in a Physical Internet Supply Chain: an applied optimisation model with peddling and shipment consolidation

Simranjeet S. Chadha, M. Ali Ülkü and Uday Venkatadri

International Journal of Production Research, 2022, vol. 60, issue 16, 4995-5011

Abstract: The delivery of goods (freight) accounts for the major cost and emissions in logistics systems worldwide. The effective management of the supply chain requires logistical efficiency and sustainability. Several logistics performance measurements such as distances driven and fuel efficiency are also indicators of sustainability. As an emerging paradigm, the Physical Internet (PI) addresses logistical, societal, and sustainability goals. However, the question remains whether some aspects of logistical efficiency in traditional logistics could be incorporated into the PI paradigm. To this effect, we examine how peddling, a consolidation strategy in traditional logistics, can enhance PI supply chain. Specifically, we formulate optimisation models and study the case of a Mexican automotive supply chain from both the PI and traditional logistics perspectives by comparing three different configurations; namely, Model P built on PI, Model S based on conventional standard peddling, and Model H, a hybrid. The hybrid Model H is optimised in a two-phase solution framework. We show via the case of a Mexican automotive supply chain that Model H outperforms others on average distance travelled and truck utilisation. Thereby, it is concluded that appropriate peddling and shipment consolidation policies may enhance PI supply chain logistics performance.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2021.1946613 (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:60:y:2022:i:16:p:4995-5011

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

DOI: 10.1080/00207543.2021.1946613

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 ().