Dynamic Containerized Consolidation in Physical Internet Enabled Parcel Logistics
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Kaboudvand, Sara
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Abstract
Many studies in the parcel logistics literature have accredited the hub-based network structures for better freight consolidation and economies of scale. A downside to this practice, however, is that sorting a large number of parcels at (intermediate) hubs requires a significant investment in real estate, human, and machine resources. Furthermore, the time spent in the hubs for waiting and processing increases the parcels' total in-transit time. Such re-sorting can be bypassed by smartly encapsulating parcels that share common service features and a subsequent destination. In this study, we rely on the capabilities of a Physical Internet enabled logistic network to introduce several decision protocols for dynamic containerized consolidation as pertinent to fast-paced parcel logistic environments. We use agent-based simulation to provide empirical results and elaborate on the benefits of containerized consolidation, specifically in saving handling efforts at hubs.
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2021-06
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