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Logistics Hub and Route Optimization in the Physical Internet Paradigm

Author

Listed:
  • 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)

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.

Suggested Citation

  • Hisatoshi Naganawa & Enna Hirata & Nailah Firdausiyah & Russell G. Thompson, 2024. "Logistics Hub and Route Optimization in the Physical Internet Paradigm," Logistics, MDPI, vol. 8(2), pages 1-18, April.
    • Handle: RePEc:gam:jlogis:v:8:y:2024:i:2:p:37-:d:1372266
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    References listed on IDEAS

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    1. Sun, Shiqi & Cassan, Cathérine & Macharis, Cathy, 2024. "Communication is computation: A privacy-protecting routing protocol for Physical Internet," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 191(C).

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