Designing a Resilient and Sustainable Logistics Network under Epidemic Disruptions and Demand Uncertainty
Abstract
:1. Introduction
- Modelling the integrated logistics network design problem that includes routing, inventory and location–allocation decisions and considers demand fluctuations and epidemic disruptions with ripple effects.
- Applying a Monte Carlo simulation to generate plausible scenarios and model the different sources of uncertainty.
- Considering capacity augmentation and logistics collaboration as a strategy to reduce the risk of disruption.
- Assessing three aspects of sustainability and investigating the interaction between these aspects and resilience in the integrated design of two-echelon logistics networks subject to epidemic disruptions.
2. Literature Review
3. Problem Definition and Mathematical Modelling
- Each retailer i can be visited once by one of the vehicles and served from a single distribution center d [54].
- Each supplier has a specific product, but all products are compatible.
- Retailers’ demand is assumed to be stochastic and follows a normal distribution [51].
- Vehicles and semitrailer trucks can conduct several routes in each period scenario [41].
- Location–allocation is a strategic decision, which is independent of the planning periods and plausible scenarios, as stated by Rafie-Majd et al. [56].
3.1. Sustainability Dimensions
3.1.1. Costs Calculation
3.1.2. Environmental Assessment
3.1.3. Social Sustainability Assessment
3.2. Measure of Resilience
3.3. Epidemic Disruption Modelling
3.4. Stochastic Mathematical Model
3.5. Resiliency and Sustainability Strategies Formulations
3.5.1. Capacity Expansion
3.5.2. Logistics Collaboration
4. Solution Methodology
4.1. Scenarios Generation by a Monte Carlo Simulation
4.2. Sample Average Approximation Method
5. Computational Experiments
5.1. Description and Data
5.2. Results and Discussion
5.2.1. Economic Resilience Performance Analysis
5.2.2. Environmental Resilience Performance Analysis
5.2.3. Social Resilience Performance Analysis
5.3. Managerial Implications
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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References | Decision Problem | Evaluated Sustainability | Disruption | Uncertain Demand | |||||
---|---|---|---|---|---|---|---|---|---|
Location | Inventory | Routing | Economic | Environmental | Social | Isolated | Ripple Effect | ||
[36] | ✓ | ✓ | ✓ | ✓ | |||||
[37] | ✓ | ✓ | ✓ | ||||||
[38] | ✓ | ✓ | ✓ | ||||||
[39] | ✓ | ✓ | ✓ | ✓ | |||||
[40] | ✓ | ✓ | ✓ | ||||||
[5] | ✓ | ✓ | ✓ | ✓ | |||||
[42] | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
[43] | ✓ | ✓ | ✓ | ✓ | |||||
[44] | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
[45] | ✓ | ✓ | ✓ | ✓ | |||||
[46] | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
[17] | ✓ | ✓ | ✓ | ✓ | |||||
[48,49] | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
[50] | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |||
[51] | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
[52] | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
[28,53] | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |||
[30] | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
This study | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Symbol | Definition |
---|---|
Sets | |
J | Set of suppliers |
D | Set of distribution centers |
I | Set of retailers |
A1, A2 | Set of pickups and delivery routes arcs |
T | Set of periods in the planning horizon |
S | Set of plausible scenarios |
Independent input parameters of scenarios | |
Capj | Maximum throughput capacity of the supplier j |
Capd | Maximum throughput capacity of the distribution center d |
FOd | Fixed cost of the distribution center d |
ECd | Average energy consumption of the distribution center d |
Qs | Semitrailer truck maximum loading capacity |
Qv | Vehicle loading capacity |
Fs | Operating cost of a semitrailer truck (by route) |
Fv | Operating cost of a vehicle (by route) |
TsE | Fuel consumption rate of an empty semitrailer truck (L/Km) |
TsL | Fuel consumption rate of a fully loaded semitrailer truck (L/Km) |
TvE | Fuel consumption rate of an empty vehicle (L/Km) |
TvL | Fuel consumption rate of a fully loaded vehicle (L/Km) |
cI | Inventory unit cost in distribution centers (€/Kg) |
cp | Penalty unit cost (€/Kg) |
cf | Fuel price per liter (€/L) |
eF | Fuel CO2 emission factor (Kg CO2/L) |
ec | CO2 emitted per energy consumption unit (Kg CO2/kwh) |
Ac | Average number of accidents |
di,j | Distance between two nodes i and j: |
Input parameters dependent of scenarios | |
Demand of retailer i from supplier j in period t under scenario s | |
ps | Occurrence probability of scenario s, = 1 |
First-stage decision variables | |
Binary variable, equal to 1 if the distribution center d is open; 0, otherwise | |
Binary variable, equal to 1 if node i is assigned to center d; 0, otherwise, i ∈ I ∪ J, d ∈ D | |
Second-stage decision variables | |
Quantity delivered by supplier j to center d in period t under scenario s | |
Product quantity of supplier j delivered by center d to customer i in period t under scenario s | |
Inventory level of products of supplier j in center d in period t under scenario s | |
Binary variable, equal to 1 if arc (i; j) is traversed by a vehicle/semitrailer at period t under scenario s; 0, otherwise, | |
Freight quantity transported by a semitrailer truck/ vehicle on the arc (i; j) if it moves directly from node i to node j in period t under scenario s, (i; j) A2 |
Instance | Number of Suppliers | Number of Distribution Centers | Number of Retailers | Number of Periods | Number of Replications | Number of Scenarios |
---|---|---|---|---|---|---|
I1 | 2 | 2 | 5 | 12 | 5 | 10 |
I2 | 3 | 3 | 9 | 12 | 5 | 10 |
Parameter | Value/Estimation | Source |
---|---|---|
Capj | 20,000 Kg | Assumption |
Capd | 20,000 Kg | Assumption |
FOd | 6000 € | [67] |
ECd | 10,000 Kwh | [68] |
Qs | 20,000 Kg | [69] |
Qv | 10,000 Kg | [69] |
Fs | 300 € | [69] |
Fv | 200 € | [69] |
TsE | 0.15 L/km | [70] |
TsL | 0.31 L/km | [70] |
TvE | 0.13 L/km | [70] |
TvL | 0.15 L/km | [70] |
cI | 0.01 €/Kg | [59] |
cp | 1.5 €/Kg | Assumption |
cf | 1.5 €/L | [27,41] |
eF | 2.66 Kg CO2/L | [71] |
ec | 0.087 Kg CO2/L | [68] |
Ac | 2768 accidents per year | [54] |
Instance | Configuration | Expected Cost (€) | Expected Emissions (Kg CO2) | Expected Accident Rate (%) | Average Number of Opened DCs | Service Level (%) |
---|---|---|---|---|---|---|
I1 | NDM | 21,067.019 | 3491.360 | 21.050 | 2 | 100.00 |
DM | 47,765.679 | 3300.762 | 18.211 | 2 | 73.38 | |
DMCE | 29,517.612 | 4100.046 | 25.724 | 2 | 99.66 | |
DMCL | 38,742.400 | 2207.619 | 15.368 | 1 | 73.96 | |
DMCECL | 19,113.490 | 2797.541 | 20.576 | 1 | 99.87 | |
I2 | NDM | 31,858.988 | 6663.545 | 50.831 | 3 | 100.00 |
DM | 73,897.477 | 6626.066 | 51.055 | 3 | 77.53 | |
DMCE | 46,672.017 | 8115.822 | 54.675 | 3 | 98.75 | |
DMCL | 58,248.953 | 3526.752 | 30.153 | 1 | 77.48 | |
DMCECL | 30,891.362 | 3902.640 | 35.679 | 1 | 99.54 |
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Aloui, A.; Hamani, N.; Delahoche, L. Designing a Resilient and Sustainable Logistics Network under Epidemic Disruptions and Demand Uncertainty. Sustainability 2021, 13, 14053. https://doi.org/10.3390/su132414053
Aloui A, Hamani N, Delahoche L. Designing a Resilient and Sustainable Logistics Network under Epidemic Disruptions and Demand Uncertainty. Sustainability. 2021; 13(24):14053. https://doi.org/10.3390/su132414053
Chicago/Turabian StyleAloui, Aymen, Nadia Hamani, and Laurent Delahoche. 2021. "Designing a Resilient and Sustainable Logistics Network under Epidemic Disruptions and Demand Uncertainty" Sustainability 13, no. 24: 14053. https://doi.org/10.3390/su132414053
APA StyleAloui, A., Hamani, N., & Delahoche, L. (2021). Designing a Resilient and Sustainable Logistics Network under Epidemic Disruptions and Demand Uncertainty. Sustainability, 13(24), 14053. https://doi.org/10.3390/su132414053