AN APPLIED OPTIMIZATION MODEL FOR FREIGHT DELIVERY IN A PHYSICAL INTERNET SUPPLY CHAIN

Abstract

The Physical Internet (PI, or π) is a recent infrastructure in the supply chain, which allows transformation of the current logistics system into a universally interconnected system. It aims at tackling the issues of economic, environmental, and social sustainability in conventional logistics, allowing improvement of unsustainable freight transportation. In analogy to Digital Internet (DI), the key concept of PI is an open interconnected logistics system with a collaborative distribution network of PI hubs. PI offers a common operating framework for different companies in which physical products can be transported seamlessly in standard modularised π-containers similar to data packets in a DI. This thesis analyzes the PI and the conventional logistic system. The main objective of the thesis is to compare the 3 different models, PI system (P), standard system (S), and hybrid (H). From a system-wide cost perspective, it is shown that Model H may perform better than the others.