Smart logistics: distributed control of green crowdsourced parcel services

Seok Gi Lee, Yuncheol Kang, Vittaldas V. Prabhu

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

This paper presents the development of an integrated decision-making framework for on-demand parcel delivery services that considers Just-In-Time delivery, fuel consumption and carbon emissions. Optimal policies based on the Markov decision process are established to allow for inclusion of parcel delivery requests. The framework’s integrated dynamic algorithm, based on a continuous variable feedback control, allows for unified processing of delivery requests and route scheduling. Computational experiments show that the integrated approach could increase revenue by 6.4% by reducing fuel and emission costs by 2.5%; however, the approach may incur more cost in terms of timeliness compared to a myopic approach.

Original languageEnglish (US)
Pages (from-to)1-13
Number of pages13
JournalInternational Journal of Production Research
DOIs
StateAccepted/In press - Jan 10 2016

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Keywords

  • carbon emissions
  • fuel consumption
  • just-in-time
  • Markov decision process
  • on-demand delivery service

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Management Science and Operations Research
  • Strategy and Management

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