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Simulation-Based Assessment of Hyperconnected Megacity Parcel Logistics

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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)

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.

Suggested Citation

  • Sara Kaboudvand & Benoit Montreuil, 2024. "Simulation-Based Assessment of Hyperconnected Megacity Parcel Logistics," Logistics, MDPI, vol. 8(3), pages 1-32, July.
    • Handle: RePEc:gam:jlogis:v:8:y:2024:i:3:p:66-:d:1427732
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    References listed on IDEAS

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