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Physical Internet-enabled customised furniture delivery in the metropolitan areas: digitalisation, optimisation and case study

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  • 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.

Suggested Citation

  • Hao Luo & Siyu Tian & Xiang T. R. Kong, 2021. "Physical Internet-enabled customised furniture delivery in the metropolitan areas: digitalisation, optimisation and case study," International Journal of Production Research, Taylor & Francis Journals, vol. 59(7), pages 2193-2217, April.
    • Handle: RePEc:taf:tprsxx:v:59:y:2021:i:7:p:2193-2217
    DOI: 10.1080/00207543.2020.1832271
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    Cited by:

    1. Nguyen, Tiep & Duong, Quang Huy & Nguyen, Truong Van & Zhu, You & Zhou, Li, 2022. "Knowledge mapping of digital twin and physical internet in Supply Chain Management: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 244(C).
    2. Niu, Baozhuang & Dai, Zhipeng & Liu, Yaoqi & Jin, Yong, 2022. "The role of Physical Internet in building trackable and sustainable logistics service supply chains: A game analysis," International Journal of Production Economics, Elsevier, vol. 247(C).
    3. Wang, Haibo & Alidaee, Bahram, 2023. "White-glove service delivery: A quantitative analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    4. Pan, Fei & Pan, Shenle & Zhou, Wei & Fan, Tijun, 2022. "Perishable product bundling with logistics uncertainty: Solution based on physical internet," International Journal of Production Economics, Elsevier, vol. 244(C).
    5. Liu, Weihua & Long, Shangsong & Wei, Shuang, 2022. "Correlation mechanism between smart technology and smart supply chain innovation performance: A multi-case study from China's companies with Physical Internet," International Journal of Production Economics, Elsevier, vol. 245(C).
    6. Li, Ming & Shao, Saijun & Li, Yang & Zhang, Hua & Zhang, Nianwu & He, Yandong, 2022. "A Physical Internet (PI) based inland container transportation problem with selective non-containerized shipping requests," International Journal of Production Economics, Elsevier, vol. 245(C).
    7. Farajpour, Farnoush & Hassanzadeh, Alireza & Elahi, Shaban & Ghazanfari, Mehdi, 2022. "Digital supply chain blueprint via a systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

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