An integrated model for the production-inventory-distribution problem in the Physical Internet

In contrast to traditional supply chain networks, Physical Internet (PI) is an interconnected open global logistics network based on open PI hubs and standard PI-containers that has the potential to achieve ground-breaking improvements in integrated production-inventory-distribution management. In t...

Full description

Saved in:
Bibliographic Details
Published in:International journal of production research 2019-02, Vol.57 (4), p.1000-1017
Main Authors: Ji, Shou-feng, Peng, Xiao-shuai, Luo, Rong-juan
Format: Article
Language:English
Subjects:
Configurations
Containers
Cost control
Distribution management
Integer programming
interconnected logistics
Internet
Linear programming
Logistics
mixed-integer linear programming
Physical Internet
Production-inventory-distribution
shipment planning
Supply chains
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In contrast to traditional supply chain networks, Physical Internet (PI) is an interconnected open global logistics network based on open PI hubs and standard PI-containers that has the potential to achieve ground-breaking improvements in integrated production-inventory-distribution management. In this paper, to quantify the advantages of PI from a cost performance perspective, we propose a mixed-integer linear programming (MILP) formulation for addressing the problem that combines an integrated production-inventory-distribution decision with PI, which has been addressed separately in the existing literature. The results of computational experiments show that while achieving a comparable or better service level, PI can achieve significant cost savings compared to a traditional supply chain network with a dynamic configuration and a hybrid configuration. Moreover, we investigate the impact of several problem parameter changes on the total costs under each network setting, and managerial insights are derived.
ISSN:0020-7543
1366-588X
DOI:10.1080/00207543.2018.1497818