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Section outline

  • Session 5: PHYSICAL INTERNET RETAIL and DISTRIBUTION NETWORKS

    Session Chair: LUO Hao. Associate Professor & Head, Department of Transportation Economics and Logistics Management College of Economics, Shenzhen University

    Paper contributions with presentation in this session:


    • Physical Internet (PI) and city logistics are two novel concepts aiming to render more economically, environmentally and socially efficient and sustainable the way, in which physical objects are transported, handled, stored, realized, supplied and used throughout the world. City logistics is a key enabler to city economy, which has been introduced to cope with the challenges of sustainable cohabitation and development of freight transportation in the city. In the city logistics operation, bulky goods delivery is big challenge since it is difficult to delivery in the “last 100 meters” in the city. This research has been motivated by real-life problem faced by our collaborating company, which is specialized in customized furniture. Following characteristics of customized furniture industry create lots of problems to delivery service providers. In order to mitigate these impacts, the model of Physical Internet enabled Bulky Goods City Logistics (PI-BGCL) is proposed. The meta-heuristic algorithm (Genetic algorithm) has been applied to compare the traditional delivery model and proposed PI-BGCL model. To validate the effect and efficiency of proposed PI-BGCL model, the case study in this paper consists of two parts. The first one is a real-life case study of a customized furniture industry in China, which demonstrates the efficiency and feasibility of the proposed mode. The second one is to validate the effectiveness of proposed algorithms. Experimental design and a set of sensitivity analyses was performed to examine the effects of several key parameters on system performance.

    • This paper addresses the optimization of dealer replenishment decisions in planning their assortment for high-value substitutable products so as to maximize product availability of dealers in hyperconnected retail networks. To achieve this, we formalize the problem as a discrete optimization model, and provide exploratory empirical results based on a Monte Carlo simulation for a case study of a leading manufacturer of recreational vehicles. Then, we show that the proposed model achieved sales increase by 30% in a given network while keeping the same inventory level as the current business model. Emphasizing availability rather than inventory, we present the contribution of this paper in assortment planning, inventory transshipment, customers’ substitution behavior, and product availability. We conclude the paper with a call for further research under Physical Internet-enabled settings such as aiming universal hyperconnectivity in transportation, distribution, production and supply.

    • In this paper, we present a dynamic approach for designing a hyper-connected network based on the multi-plane logistic structure proposed by Montreuil, Shannon, et al. (2018). Possible hub candidates are selected based on geographical locations and historic demand volume, and a heuristic solution for large-scale hub location problem (up to 5000 nodes) is presented to reflect different consolidation preference. Moreover, we construct an end-to-end framework for network configuration assessment and update through routing and simulation, allowing optimization of the whole system over comprehensive performance indicators.

    • Although e-commerce has transformed the way products are manufactured, transported, and sold, the pure e-commerce context is not appropriate for high value goods. In these industries, products are not strictly purchased online and the role of offline retail stores remains important as it is crucial for the customers to experience the product prior to the purchase. In fact, in some industries, having the possibility of testing the products could be a deciding factor. In the omnichannel supply chain era, showcasing is then emerging as one of the forthcoming key retailing factors. A showcasing value optimization model for hyperconnected showcasing centers, which maximizes showcasing value with respect to binary variables that represent which models are showcased is developed. The goal is to ultimately best represent the portfolio of products with features that customers expect to experience. Numerical results from our case study suggest that the showcasing value can be optimized to create a more efficient and effective showcase, with 20.4% increase on average across all 17 dealers. We also reiterate that for the model to be sustainable, Physical Internet and highly efficient, interconnected networks, are required

    • Presentations in this session

    • Poster in this session

    • In a technology driven era, star-ups have gained more momentun in the marketplace, particularly user-based platforms.  As startups develop, their logistics systems grow in complexity.  Here we introduce several components that make up a hiperconnected logistics system for Farm-to-Table (F2T) platforms.  In the examples seen in this poster we use the use case of Farm´d, a North American based start-up.  Such platforms introduce logistics that must consider both the downstream side of markets, such as urban agglomerations with restaurants, institutions, and households demanding fresh and local food, and their upstream side consisting of farms producing and selling fresh and local food.