A City Logistics Distribution Model: A Physical Internet Approach

Abstract

The Physical Internet (PI) provides a solution for coping with the continuous rise in urban logistical demands by exploring same-level and cross-level paths. This research suggests a PI-based urban logistical distribution model based on PI distribution that minimizes transportation costs. It also intends to maintain the integrity of the logistical transportation process. This proposed model enhances the flexibility of goods operation and reduces the global cost of logistics’ distribution using an interconnected and open PI logistics distribution mode. This model also explores the functional aspects of the operational problems of city logistical systems and relates to optimization problems. These functionalities are realized by the hierarchical functional structure and are characterized by different cost specifications. The proposed framework provides better integration and cooperation between city logistics warehouses and higher utilization level of logistical infrastructure. The experimental results show that the distribution cost of the PI logistics model is significantly better than that of a traditional logistics model. The elastic and cost advantages grow relatively as the infrastructure for distribution scales up and interruptions from emergencies occur.