Sustainable Logistics Network Design for Delivery Operations with Time Horizons in B2B E-Commerce Platform

Dhirendra Prajapati,H Chelladurai,M Manoj Kumar,Saurabh Pratap,Mohd Zuhair

doi:10.3390/logistics5030061

Abstract

In the recent era, the rapidly increasing trend of e-commerce business creates opportunities for logistics service providers to grow globally. With this growth, the concern regarding the implementation of sustainability in logistic networks has received attention in recent years. Thus, in this work, we have focused on the vehicle routing problem (VRP) to deliver the products in a lesser time horizon with driver safety concern considerations in business (B2B) e-commerce platforms. We proposed a sustainable logistics network that captures the complexities of suppliers, retailers, and logistics service providers. A mixed-integer nonlinear programming (MINLP) approach is applied to formulate a model to minimize total time associated with order processing, handling, packaging, shipping, and vehicle maintenance. Branch-and-bound algorithms in the LINGO optimization tool and genetic algorithm (GA) are used to solve the formulated mathematical model. The computational experiments are performed in eight different case scenarios (small-sized problem to large-sized problem) to validate the model.

Highlights

Behnam MalmirThere is an increasing trend of the e-commerce industry in recent years worldwide as more people are opting for online shopping
We attempt to minimize the time required for vehicle maintenance, which relates to the maintenance cost that comes under economic and social sustainability
We have considered a real-life B2B e-commerce logistics prob lem,3. which captures the sustainable vehicle routing problem (VRP) to minimize the total time horizon

Summary

Introduction

There is an increasing trend of the e-commerce industry in recent years worldwide as more people are opting for online shopping. This is because of the range of products on the same platform, transparency of prices offered by sellers, convenience, discounts, and cashback offers provided by the e-commerce companies. Rising internet penetration into cities and rural areas of India further adds to the growth of e-commerce. There is a significant growth of logistics companies, and the expected increment in it is expected to be USD 15.5 trillion within the forthcoming 10 years. Indian logistics companies’ raise is expected to be about 9–10 percent in a very short period [1]

Methods

Discussion

Conclusion