IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i19p8042-d421509.html
   My bibliography  Save this article

Improving the Operational Efficiency of Parcel Delivery Network with a Bi-Level Decision Making Model

Author

Listed:
  • Daisik Nam

    (Institute of Transportation Studies, University of California, Irvine, CA 92697, USA)

  • Minyoung Park

    (Graduate School of Logistics, Inha University, Incheon 22212, Korea)

Abstract

This article proposes a mathematical model for integrating terminal operation strategies with shipment scheduling. We are motivated by findings from the literature on the integrated design of logistic systems. The objective of this research is to efficiently utilize the existing hub terminals and transport network by considering the minimization of costs related to terminal congestion, transport, and carbon dioxide (CO 2 ) emissions. Cooperative behaviors of terminal managers and fleet assignment managers are modeled in a bi-level problem framework. The total cost includes a processing cost and transport cost, and CO 2 related to the assigned fleets. We introduce a terminal cost function to capture the relationship between unit processing cost with respect to hub delay, which allows us to find the minimum cost path and efficiently distribute shipments to hub terminals. The case study shows that the collaborative logistics outperforms a single routing strategy and capacity expansions in minimization of both total cost and CO 2 emissions.

Suggested Citation

  • Daisik Nam & Minyoung Park, 2020. "Improving the Operational Efficiency of Parcel Delivery Network with a Bi-Level Decision Making Model," Sustainability, MDPI, vol. 12(19), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8042-:d:421509
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/19/8042/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/19/8042/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Minken, Harald & Johansen, Bjørn Gjerde, 2019. "A logistics cost function with explicit transport costs," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    2. Masaeli, Mobina & Alumur, Sibel A. & Bookbinder, James H., 2018. "Shipment scheduling in hub location problems," Transportation Research Part B: Methodological, Elsevier, vol. 115(C), pages 126-142.
    3. Bing Qing Tan & Fangfang Wang & Jia Liu & Kai Kang & Federica Costa, 2020. "A Blockchain-Based Framework for Green Logistics in Supply Chains," Sustainability, MDPI, vol. 12(11), pages 1-13, June.
    4. Carlos F. Daganzo, 2005. "Logistics Systems Analysis," Springer Books, Springer, edition 0, number 978-3-540-27516-9, September.
    5. William J. Gordon & Gordon F. Newell, 1967. "Closed Queuing Systems with Exponential Servers," Operations Research, INFORMS, vol. 15(2), pages 254-265, April.
    6. Tommi Inkinen & Esa Hämäläinen, 2020. "Reviewing Truck Logistics: Solutions for Achieving Low Emission Road Freight Transport," Sustainability, MDPI, vol. 12(17), pages 1-11, August.
    7. Ishfaq, Rafay & Sox, Charles R., 2012. "Design of intermodal logistics networks with hub delays," European Journal of Operational Research, Elsevier, vol. 220(3), pages 629-641.
    8. Jingjing Hao & Haoming Shi & Victor Shi & Chenchen Yang, 2020. "Adoption of Automatic Warehousing Systems in Logistics Firms: A Technology–Organization–Environment Framework," Sustainability, MDPI, vol. 12(12), pages 1-14, June.
    9. Susila Munisamy, 2010. "Timber terminal capacity planning through queuing theory," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 12(2), pages 147-161, June.
    10. James R. Jackson, 1963. "Jobshop-Like Queueing Systems," Management Science, INFORMS, vol. 10(1), pages 131-142, October.
    11. Omar Ben-Ayed & Charles E. Blair, 1990. "Computational Difficulties of Bilevel Linear Programming," Operations Research, INFORMS, vol. 38(3), pages 556-560, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nico Dijk & Barteld Schilstra, 2022. "On two product form modifications for finite overflow systems," Annals of Operations Research, Springer, vol. 310(2), pages 519-549, March.
    2. Valeriy A. Naumov & Yuliya V. Gaidamaka & Konstantin E. Samouylov, 2019. "On Two Interacting Markovian Queueing Systems," Mathematics, MDPI, vol. 7(9), pages 1-12, September.
    3. J. P. van der Gaast & M. B. M. de Koster & I. J. B. F. Adan, 2018. "Conveyor Merges in Zone Picking Systems: A Tractable and Accurate Approximate Model," Service Science, INFORMS, vol. 52(6), pages 1428-1443, December.
    4. Shuji Kijima & Tomomi Matsui, 2008. "Randomized approximation scheme and perfect sampler for closed Jackson networks with multiple servers," Annals of Operations Research, Springer, vol. 162(1), pages 35-55, September.
    5. Vincenzo Varriale & Antonello Cammarano & Francesca Michelino & Mauro Caputo, 2021. "Sustainable Supply Chains with Blockchain, IoT and RFID: A Simulation on Order Management," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    6. Panagiotis Trivellas & Georgios Malindretos & Panagiotis Reklitis, 2020. "Implications of Green Logistics Management on Sustainable Business and Supply Chain Performance: Evidence from a Survey in the Greek Agri-Food Sector," Sustainability, MDPI, vol. 12(24), pages 1-29, December.
    7. Yi Wang & Yafei Yang & Zhaoxiang Qin & Yefei Yang & Jun Li, 2023. "A Literature Review on the Application of Digital Technology in Achieving Green Supply Chain Management," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    8. Mohammed Alnahhal & Bashir Salah & Mohammed Ruzayqat, 2022. "An Efficient Approach to Investigate the Tradeoff between Double Handling and Needed Capacity in Automated Distribution Centers," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    9. Santiago R. Balseiro & David B. Brown & Chen Chen, 2021. "Dynamic Pricing of Relocating Resources in Large Networks," Management Science, INFORMS, vol. 67(7), pages 4075-4094, July.
    10. McKelvey, Bill & Wycisk, Christine & Hülsmann, Michael, 2009. "Designing an electronic auction market for complex 'smart parts' logistics: Options based on LeBaron's computational stock market," International Journal of Production Economics, Elsevier, vol. 120(2), pages 476-494, August.
    11. Fan, Lei & Wilson, William W. & Dahl, Bruce, 2015. "Risk analysis in port competition for containerized imports," European Journal of Operational Research, Elsevier, vol. 245(3), pages 743-753.
    12. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    13. Filip Škultéty & Dominika Beňová & Jozef Gnap, 2021. "City Logistics as an Imperative Smart City Mechanism: Scrutiny of Clustered EU27 Capitals," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    14. Matthias Winkenbach & Alain Roset & Stefan Spinler, 2016. "Strategic Redesign of Urban Mail and Parcel Networks at La Poste," Interfaces, INFORMS, vol. 46(5), pages 445-458, October.
    15. Peter Mako & Andrej Dávid & Patrik Böhm & Sorin Savu, 2021. "Sustainable Transport in the Danube Region," Sustainability, MDPI, vol. 13(12), pages 1-21, June.
    16. Straubert, Christian, 2024. "A continuous approximation location-inventory model with exact inventory costs and nonlinear delivery lead time penalties," International Journal of Production Economics, Elsevier, vol. 268(C).
    17. Saulius Minkevičius & Igor Katin & Joana Katina & Irina Vinogradova-Zinkevič, 2021. "On Little’s Formula in Multiphase Queues," Mathematics, MDPI, vol. 9(18), pages 1-15, September.
    18. Xianyue Li & Ruowang Yang & Heping Zhang & Zhao Zhang, 2022. "Partial inverse maximum spanning tree problem under the Chebyshev norm," Journal of Combinatorial Optimization, Springer, vol. 44(5), pages 3331-3350, December.
    19. Pardis Pourmohammadi & Reza Tavakkoli-Moghaddam & Yaser Rahimi & Chefi Triki, 2023. "Solving a hub location-routing problem with a queue system under social responsibility by a fuzzy meta-heuristic algorithm," Annals of Operations Research, Springer, vol. 324(1), pages 1099-1128, May.
    20. Delasay, Mohammad & Ingolfsson, Armann & Kolfal, Bora & Schultz, Kenneth, 2019. "Load effect on service times," European Journal of Operational Research, Elsevier, vol. 279(3), pages 673-686.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8042-:d:421509. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.