Design and development of a hybrid artificial bee colony algorithm for the environmental vehicle routing problem

The vehicle routing problem (VRP) is a critical and vital problem in logistics for the design of an effective and efficient transportation network, within which the capacitated vehicle routing problem (CVRP) has been widely studied for several decades due to the practical relevance of logistics operation. However, CVRP with the objectives of minimizing the overall traveling distance or the traveling time cannot meet the latest requirements of green logistics, which concern more about the influence on the environment. This paper studies CVRP from an environmental perspective and introduces a new model called environmental vehicle routing problem (EVRP) with the aim of reducing the adverse effect on the environment caused by the routing of vehicles. In this research, the environmental influence is measured through the amount of the emission carbon dioxide, which is a widely acknowledged criteria and accounts for the major influence on environment. A hybrid artificial bee colony algorithm (ABC) is designed to solve the EVRP model, and the performance of the hybrid algorithm is evaluated through comparing with well-known CVRP instances. The computational results from numerical experiments suggest that the hybrid ABC algorithm outperforms the original ABC algorithm by 5% on average. The transformation from CVRP to EVRP can be recognized through the differentiation of their corresponding optimal solutions, which provides practical insights for operation management in green logistics.     

The private and social cost efficiency of port hinterland container distribution through a regional logistics system

Increasingly, the debate on freight transport and logistics involves the challenge of sustainable development. Key objectives of sustainable or “green” freight logistics systems are the mitigation of negative environmental and human health effects of distribution operations and the realization of a major modal shift in transport preferences, while at the same time achieving internal generalized cost efficiency and quality of services. Pursuing these goals requires the introduction of a range of measures. These measures call for private and public actors to take up various initiatives and adopt policies. Usually, it is more effective to combine different actions into an integrated package of measures than to introduce single instruments in isolation.This article explores the nexus between sustainability and port hinterland container logistics. In particular, the methodology and results of an empirical analysis based on applications of a network programming tool called the “interport model” are presented and discussed. The model enables an examination of all possible effects on inland container flows and their associated internal and external costs due to public and private initiatives in the field of port hinterland container logistics. The empirical analysis aims to evaluate the impact of a set of simultaneous policy options and operational measures on the competitiveness and sustainability of hinterland multimodal distribution of import and export containers handled at the seaports of the Campania region located in Southern Italy. The loading units can transit through the dry port facilities (the so called “interports”) located in the same region and/or through extra regional railway terminals, before reaching their ultimate inland destinations or the seaports. The integrated package of measures simulated by means of the model includes: (i) infrastructure policy, (ii) improvements of rail services, (iii) regulatory changes in terms of customs authorizations and procedures, (iv) removal of technical and legal barriers to fair and non-discriminatory competition in the market of rail traction between regional seaports and interports, (v) new business models integrating container logistics operations between seaports and interports, and (vi) social marginal cost charging of transport operations. Once this package of instruments is introduced, higher private and social cost efficiency of port hinterland container distribution through the investigated regional logistics system can be achieved. For instance, it has been estimated an annual saving of the order of about 12,660 tonnes of CO₂ equivalent emissions from transport corresponding to an external cost reduction of 0.27 million euros from the observed real life situation, whereas the estimated saving in terms of air pollution (CO, NO_x, PM, SO₂, VOC) from transport is approximately 220 tonnes per year corresponding to an external benefit of 1.31 million euros.The most immediate priority appears to be the customs and intermodal logistics integration of seaports and interports by means of full implementation of the “extended gateway” concept as a way to increase the rail share of modal split and improve the overall cost efficiency of the system. In addition, the simultaneous introduction of a social marginal cost charging policy can contribute to make the regional interports a viable solution to expand the hinterland reach of the regional seaport cluster.     

Analytic hierarchy process application in selecting the mode of transport for a logistics company

As a multi‐criteria decision‐making (MCDM) method, the analytic hierarchy process (AHP) has been used considerably to solve hierarchical or network‐based decision problems in socio‐economic fields. Following an in‐depth explanation of the transport function in logistics and an overview of the MCDM methods, the AHP model is employed in the paper for a logistics company in selecting the most suitable way of transportation between two given locations in Turkey. The criteria used in the selection of transportation modes are identified as the cost, speed, safety, accessibility, reliability, environmental friendliness, and flexibility. Several cost parameters (transportation, storage, handling, bosphorus crossover) are incorporated into the decision‐making process. The application is carried out in instructional character. The results of the study indicate that the railway transportation, which is not widely used in Turkey, is also an alternative and suitable means of transportation. Copyright © 2013 John Wiley & Sons, Ltd.     

Quantifying the environmental and economic benefits of cooperation: A case study in temperature-controlled food logistics

Inefficient road transportation causes unnecessary costs and polluting emissions. This problem is even more severe in refrigerated transportation, in which temperature control is used to guarantee the quality of the products. Organizing logistics cooperatively can help decrease both the environmental and the economic impacts. In Joint Route Planning (JRP) cooperation, suppliers and customers jointly optimize routing decisions so that cost and emissions are minimized. Vendor Managed Inventory (VMI) cooperation extends JRP cooperation by optimizing routing and inventory planning decisions simultaneously. However, in addition to their economic advantages, VMI and JRP may also yield environmental benefits. To test this assertion, we perform a case study on cooperation between a number of supermarket chains in the Netherlands. The data of this case study are analyzed to quantify both the economic and environmental benefits of implementing cooperation via JRP and VMI, using vehicle routing and an inventory routing models. We found that JRP cooperation can substantially reduce cost and emissions compared with uncooperative routing. In addition, VMI cooperation can further reduce cost and emissions, but minimizing cost and minimizing emissions no longer result in the same solution and there is a trade-off to be made.     

Time-dependent green vehicle routing problem with stochastic vehicle speeds: An approximate dynamic programming algorithm

This paper addresses a Time Dependent Capacitated Vehicle Routing Problem with stochastic vehicle speeds and environmental concerns. The problem has been formulated as a Markovian Decision Process. As distinct from the traditional attempts on the problem, while estimating the amount of fuel consumption and emissions, the model takes time-dependency and stochasticity of the vehicle speeds into account. The Time Dependent Capacitated Vehicle Routing Problem is known to be NP-Hard for even deterministic settings. Incorporating uncertainty to the problem increases complexity, which renders classical optimization methods infeasible. Therefore, we propose an Approximate Dynamic Programming based heuristic as a decision aid tool for the problem. The proposed Markovian Decision Model and Approximate Dynamic Programming based heuristic are flexible in terms that more environmentally friendly solutions can be obtained by changing the objective function from cost minimization to emissions minimization. The added values of the proposed decision support tools have been shown through computational analyses on several instances. The computational analyses show that incorporating vehicle speed stochasticity into decision support models has potential to improve the performance of resulting routes in terms of travel duration, emissions and travel cost. In addition, the proposed heuristic provides promising results within relatively short computation times.     

Optimal pricing for build-to-order supply chain design under price-dependent stochastic demand

Build to order (BTO) is a supply chain disruption mitigation strategy. Whereas cost minimization is an operational objective, the goal of the BTO manufacturer is to maximize its profit by using pricing as its competitive decision-making strategy. In this paper, we study a BTO manufacturer who simultaneously determines its product prices and designs its supply chain network to maximize its expected profit under price-dependent stochastic demand. We propose an L-shaped decomposition with complete enumeration to solve for optimality and show that the expanded master problem remains convex programming, although the optimality cuts are quadratic inequalities. The computational results demonstrate that stocking up on differentiated components and allocating modules appropriately to meet realized demand is a resilient policy that sustains variations in demand. Furthermore, the pricing decision balances the expected revenue and expected operating cost with an increase in expected profit. The integration of pricing and operational planning results in a higher expected profit than by individual decisions. We also demonstrate that cost minimization may not provide the same level of profit if the manufacturer overestimates or underestimates its most profitable demand.     

Balancing the economic and environmental performance of maritime transportation

This paper looks at the implications of various maritime emissions reductions policies for maritime logistics. There can be important trade-offs that have to be made between the environmental benefits associated with such measures as reduction in steaming speed and change in the number of vessels in the fleet, and more conventional logistics attributes such as in-transit inventory holdings.     

Internalization of Transportation External Costs: Impact Analysis of Logistics Company Mode and Route Choices

Abstract

This study focuses on the mode and route choices of a logistics company in a situation involving intercity transportation with networks of surface roads, highways and a railway. A method of transportation network analysis is applied to construct a logistics company mode and route choice models with the objective of minimizing total distribution and external costs. This study also assumes that the fleet number and vehicle capacities are given. Freight distributed from a distribution center to given retailers or consumers via surface road/highway links or via intermodal transportation involving surface road/highway links and a railway. In terms of model construction, this study first explores the routing and sequence of the retailers and consumers served by each vehicle. Second, the study internalizes the external cost of air pollution into the total distribution cost, to analyze the influences of external cost burdens on a logistics company mode and route choices from a user charge perspective. Finally, the study designs a heuristic algorithm for solving the above models, and illuminates the modeling process using a numerical example.     

Analysis of cost estimation disclosure in environmental impact statements for surface transportation projects

Reliability in cost estimates in publicly funded projects is more important today than ever with increased governmental funding to infrastructure projects and associated accountability requirements, but surface transportation projects, large and small, in the United States have a legacy of cost overruns. The problems with these overruns start with the cost estimation process before projects begin. Studies have shown that early cost estimations reflect best-case scenarios rather than realistic expectations, and have attributed technical, economic, psychological, and political reasons for underestimation. The primary objectives of this research were to determine how costs have been presented and updated in environmental impact statements, to identify endemic technical problems with cost estimation during the environmental review of surface transportation projects, and to develop recommendations for improving cost estimation and disclosure. Cost estimation methods were analyzed from the documents of 100 projects, including draft environmental impact statements, final environmental impact statements, and records of decision. The study concluded that the lack of guidance on how to include cost estimation in environmental review revealed itself in the level of detail and attention given to estimating costs. Agencies omitted or included various aspects of cost estimation randomly. Professional organizations should fill the gap of the need for specific guidance to cost estimation for environmental review so it can evolve as a state of the practice.     

Integrated operations planning and revenue management for rail freight transportation

In the rail industry, profit maximization relies heavily on the integration of logistics activities with an improved management of revenues. The operational policies chosen by the carrier have an important impact on the network yield and thus on global profitability. This paper bridges the gap between railroad operations planning and revenue management. We propose a new bilevel mathematical formulation which encompasses pricing decisions and network planning policies such as car blocking and routing as well as train make-up and scheduling. An exact solution approach based on a mixed integer formulation adapted to the problem structure is presented, and computational results are reported on randomly generated instances.     

Transportation policy analysis with a geographic information system: The virtual network of freight transportation in Europe

This paper presents a multi-modal freight transportation model based on a digitized geographic network. A systematic analysis and decomposition of all the transport operations i.e. moving, loading and unloading, transshipping and transiting, leads to the development of a virtual network where each virtual link corresponds to a specific operation, and all transportation modes and means are inter-linked. Software, called NODUS, automatically generates the virtual network so that the model can be conveniently applied to large networks. The analytical structure of the links notation makes it easy to attach specific cost functions to each virtual link. The model is applied to the trans-European freight network of roads, railways and inland waterways for the transportation of wood. Cost functions are built up for each operation by each mode/means combination. A detailed point-to-point origin-destination matrix, calibrated on Eurostat statistics, is generated by a Monte-Carlo technique. Then, the total transportation cost is minimized with respect to the choices of routes, modes and means. This provides estimations of transportation services demands as well as modal splits, to the extent that the two hypotheses of demand based on generalized cost minimization and market contestability are accepted. A sensitivity analysis on the relative road cost is made, which provides measures of arc-elasticities.     

The potential of turboprops for reducing aviation fuel consumption

To assist in aviation systems planning in the context of fuel price uncertainty and environmental regulation, we take a total logistics cost approach and evaluate three representative aircraft (narrow body, regional jet, and turboprop) for operating and passenger preference costs over a range of fuel prices. Homogenous fleets of each vehicle category are compared for operating and passenger costs over a range of fuel prices and route distances and the minimum cost fleet mix is determined. In general, as fuel prices increase, the turboprop offers a lower operating cost per seat over a wider range of distances when compared with both jet aircraft models. The inclusion of passenger costs along with operating costs decreases the number of fuel price and distance pairs where the turboprop exhibits the lower cost. This analysis shows that the aircraft that exhibits the lowest cost is highly sensitive to fuel prices and passenger costs and points to the important balance between saving fuel and serving passengers.     

Comparison of energy demands of drone-based and ground-based parcel delivery services

Drones are one of the most intensively studied technologies in logistics in recent years. They combine technological features matching current trends in transport industry and society like autonomy, flexibility, and agility. Among the various concepts for using drones in logistics, parcel delivery is one of the most popular application scenarios. Companies like Amazon test drones particularly for last-mile delivery intending to achieve both reducing total cost and increasing customer satisfaction by fast deliveries. As drones are electric vehicles, they are also often claimed to be an eco-friendly mean of transportation.In this paper an energy consumption model for drones is proposed to describe the energy demand for drone deliveries depending on environmental conditions and the flight pattern. The model is used to simulate the energy demand of a stationary parcel delivery system which serves a set customers from a depot. The energy consumed by drones is compared to the energy demand of Diesel trucks and electric trucks serving the same customers from the same depot.The results indicate that switching to a solely drone-based parcel delivery system is not worthwhile from an energetic perspective in most scenarios. A stationary drone-based parcel delivery system requires more energy than a truck-based parcel delivery system particularly in urban areas where customer density is high and truck tours are comparatively short. In rather rural settings with long distances between customers, a drone-based parcel delivery system creates an energy demand comparable to a parcel delivery system with electric trucks provided environmental conditions are moderate.     

Fuel burn and environmental implications of airline hub networks

Hubs act as switching points for interactions and so are places through which flows are concentrated. This research uses the interactions between a system of cities as an experimental context for understanding selected environmental costs and benefits of concentrated flow. Whether hub based networks create additional environmental costs has been debated in the literature. In this paper, fuel burn is used as an indicator of environmental cost. The essential ideas are: (1) to examine fuel costs associated with larger aircraft; (2) to determine implications of higher loads on dense routes; and (3) to model the resulting implications for hub and gateway location. Variants of these questions apply to passenger and freight flows, and the paper will initially concentrate on passenger models.The paper shows that by modeling fuel burn and introducing a fixed charge (like a set up cost), a multiple allocation hub and spoke model can be adjusted to direct more or less flow onto the inter-facility connector. In other words, usage of multiple connections and direct links can be controlled and modeled as a function of the fixed charge. The resulting networks are characterized by quite different levels of passenger miles, aggregate fuel burn and fixed charges. The preferred network in terms of minimal fuel burn is found by subtracting the fixed set up charge, thereby focusing attention on the modeled fuel burn. The lowest cost set up is a network with a high degree of connectivity, and a pure single assignment hub network has the highest fuel cost (as a result of larger passenger miles needed by connecting paths). The data also allow a tabulation of total passenger miles, which, not surprisingly, track very closely with the fuel burn. In an interesting application of the ideas, it is shown that a fuel efficient network may require a large number of smaller regional jets, and in the interests of avoiding noise and congestion from so many extra airport operations, the carriers may choose to substitute a smaller number of larger planes, thereby slightly increasing fuel needs. This paper also provides a key ingredient for models of an international network where it is impossible to serve many long distance market pairs without consolidation.     

Where to dispose of urban green waste? Transportation planning for the maintenance of public green spaces

Urban green spaces provide various social and environmental benefits that strongly improve the quality of life in a city. Municipalities are responsible for maintaining their green spaces in order to preserve these potentials. This paper supports municipalities in planning the transportation and disposal logistics of the green waste that is produced by the maintenance activities. The approach combines ecological issues like the seasonality of green waste generation and different types of biomass with economically driven decision making. We show how to determine cost efficient transportation plans for the disposal logistics and how to capture the seasonality of green waste generation when booking capacities at disposal facilities. It is also shown how a municipality can select the disposal facilities to cooperate with in a competitive environment where facilities offer capacities at differing conditions, as is the case for disposal sites that dump the green waste and for conversion plants that use the biomass for producing renewable energy. We illustrate the approach using case data of a major city in Germany.     

Post-disaster debris reverse logistics management under psychological cost minimization

This work presents a novel reverse logistics system for post-disaster debris. Effectiveness of the proposed system is demonstrated by applying it to a case study in Wenchuan County of China. The county was the epicenter of the Wenchuan earthquake on May 12, 2008. A multi-objective linear programming model is also formulated capable of systematically minimizing total reverse logistical costs, corresponding environmental and operational risks, and psychological trauma experienced by local residents why they waited for medical treatment and removal of debris. The psychological stress induced during the debris reverse logistic process is the integral of an increasing marginal function of the waiting time for medical treatment and debris removal. Numerical results indicate that when considering risk-induced and psychological costs, the proposed model can reduce such costs associated with post-disaster debris reverse logistics by 22.62% and 54.93%, respectively, from their values when only the logistical costs are minimized. Although reducing the psychological cost of disaster victims, the temporary storage of disaster-hit sites increases the psychological costs of individuals who are processing the debris. We recommend increasing on-site storage and treatment capacities to reduce risk-induced and psychological costs with a lower increase in logistical costs. When the risk tolerance ranges from its minimum value to +25%, the Pareto fronts are closer than those of the risk tolerance increase by more than +25%. Efforts are underway to design a tool based on the Pareto analysis method for future decision making.     

Developing green fleet management strategies: Repair/retrofit/replacement decisions under environmental regulation

The considerable cost of maintaining large fleets has generated interest in cost minimization strategies. With many related decisions, numerous constraints, and significant sources of uncertainty (e.g. vehicle breakdowns), fleet managers face complex dynamic optimization problems. Existing methodologies frequently make simplifying assumptions or fail to converge quickly for large problems. This paper presents an approximate dynamic programming approach for making vehicle purchase, resale, and retrofit decisions in a fleet setting with stochastic vehicle breakdowns. Value iteration is informed by dual variables from linear programs, as well as other bounds on vehicle shadow prices. Sample problems are based on a government fleet seeking to comply with emissions regulation. The model predicts the expected cost of compliance, the rules the fleet manager will use in deciding how to comply, and the regulation’s impact on the value of vehicles in the fleet. Stricter regulation lowers the value of some vehicle categories while raising the value of others. Such insights can help guide regulators, as well as the fleet managers they oversee. The methodologies developed could be applied more broadly to general multi-asset replacement problems, many of which have similar structures.     

The impact of depot location,fleet composition and routing on emissions in city logistics

This paper investigates the combined impact of depot location, fleet composition and routing decisions on vehicle emissions in city logistics. We consider a city in which goods need to be delivered from a depot to customers located in nested zones characterized by different speed limits. The objective is to minimize the total depot, vehicle and routing cost, where the latter can be defined with respect to the cost of fuel consumption and CO₂ emissions. A new powerful adaptive large neighborhood search metaheuristic is developed and successfully applied to a large pool of new benchmark instances. Extensive analyses are performed to empirically assess the effect of various problem parameters, such as depot cost and location, customer distribution and heterogeneous vehicles on key performance indicators, including fuel consumption, emissions and operational costs. Several managerial insights are presented.     

Energy impact evaluation for eco-routing and charging of autonomous electric vehicle fleet: Ambient temperature consideration

This paper studies the heterogeneous energy cost and charging demand impact of autonomous electric vehicle (EV) fleet under different ambient temperature. A data-driven method is introduced to formulate a two-dimensional grid stochastic energy consumption model for electric vehicles. The energy consumption model aids in analyzing EV energy cost and describing uncertainties under variable average vehicle trip speed and ambient temperature conditions. An integrated eco-routing and optimal charging decision making framework is designed to improve the capability of autonomous EV’s trip level energy management in a shared fleet. The decision making process helps to find minimum energy cost routes with consideration of charging strategies and travel time requirements. By taking advantage of derived models and technologies, comprehensive case studies are performed on a data-driven simulated transportation network in New York City. Detailed results show us the heterogeneous energy impact and charging demand under different ambient temperature. By giving the same travel demand and charging station information, under the low and high ambient temperature within each month, there exist more than 20% difference of overall energy cost and 60% difference of charging demand. All studies will help to construct sustainable infrastructure for autonomous EV fleet trip level energy management in real world applications.