Physical internet enabled two-tier city logistics solution in the new retail era
Industrial Management & Data Systems
ISSN: 0263-5577
Article publication date: 23 May 2022
Issue publication date: 10 June 2022
Abstract
Purpose
The paper aims to study the challenges and solutions of city logistics in the new retail era. The new retail, which is characterized by omni-channel, fragmented orders and decentralized 2C distribution, is becoming the mainstream of the retail industry worldwide. In order to achieve a comprehensive breakthrough in new retail, the change of order fulfillment mode is the most noteworthy issue. The aim of this paper is to design a city logistics operation model for new retail and verify its feasibility and efficiency.
Design/methodology/approach
A physical internet (PI) enabled two-tier city logistics solution is proposed by redefining the key facilities in city logistics with the PI concept. A “Container-as-a-Warehouse” operation mode is designed to provide a more flexible store and transfer solution. A mathematical model of the proposed solution is established. An adaptive large neighborhood search (ALNS) is designed based upon an iterative procedure, which ensures consistent and optimal results.
Findings
To quantitatively assess the feasibility of the proposed solution, a computational experiment is designed to compare the performance of the proposed model against the conventional two-tier city logistics operation. The effects of geographical location pattern, utilization of PI-hub as well as the fluctuation of customer orders are analyzed. The results show that the PI-enabled city logistics is more advantageous than the conventional solution.
Research limitations/implications
This study does not consider the impact of new technologies in city logistics; for example, the replenishment problem of unmanned vending machines and the charging problem of electric vehicles.
Practical implications
The proposed PI-enabled solution and analysis results in this paper have positive guiding significance for future practical application.
Originality/value
Based on the concept of PI, this paper proposes an innovative and practical operation model to solve the city logistics challenges.
Keywords
Acknowledgements
The authors would like to thank the anonymous referees and the editor for their constructive and pertinent comments. This work is supported by National Natural Science Foundation of China (No. 71671116, and No. 71671131), and the Young Elite Scientists Sponsorship Program by China Association for Science and Technology with Grant Number 2019QNRC0011.
Citation
Luo, H., Wang, Y. and Luo, Z. (2022), "Physical internet enabled two-tier city logistics solution in the new retail era", Industrial Management & Data Systems, Vol. 122 No. 6, pp. 1453-1479. https://doi.org/10.1108/IMDS-09-2021-0597
Publisher
:Emerald Publishing Limited
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