Physical Internet-enabled customised furniture delivery in the metropolitan areas: digitalisation, optimisation and case study
Hao Luo, Siyu Tian, Xiang T.R. Kong
Abstract
This article proposes a Physical Internet-enabled customized furniture delivery system (PI-CFDS) with the following contributions. First, a set of PI-enabled smart logistics facilities was adopted to transform the conventional operations. A PI decision support platform was designed to deal with resource planning. Second, since the classical methods cannot be applied directly, we developed a new approach, including both mathematical modelling and algorithm design. The optimal planning decision maximizes the shipper’s profits while providing a stable income for the carriers. Third, the proposed solution was verified via a real-life case study. The effects of geographical, cost, and demand parameters were also analyzed. Our results show that the PI-CFDS solution has advantageous over the traditional solution when considering the dispersed distribution of customer depots. We found that when the dispersion of customer locations increases, the fixed cost of vehicles increases, and the salary difference between drivers and movers increases; in this situation, the advantages of the PI-CFDS solution are more apparent. However, compared with the traditional solution, the PI-CFDS solution is more sensitive to the rise of fuel prices and the stability of demand. The results yield substantial insights and facilitate daily decision-making for managers.