Smart logistics: distributed control of green crowdsourced parcel services

Seokgi Lee, Yuncheol Kang, Vittaldas V. Prabhu

Research output: Contribution to journalArticlepeer-review

20 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)6956-6968
Number of pages13
JournalInternational Journal of Production Research
Volume54
Issue number23
DOIs
StatePublished - Dec 1 2016

Keywords

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

ASJC Scopus subject areas

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

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