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Green Freight Distribution: A Case Study in Greece

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Operational Research in the Era of Digital Transformation and Business Analytics (BALCOR 2020)

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Abstract

City logistics and last-mile distribution have gained the interest of practitioners and logistics companies, as well as of consumers and inhabitants. In the case of companies, the objective is to minimize distribution costs and improve the quality of services provided. On the other hand, consumers require fast deliveries and accuracy in time restrictions. Moreover, society and governments are interested in the minimization of greenhouse gas emissions, which greatly affect cities. Addressing effectively the distribution of products in urban areas presupposes the use of advanced algorithms solving optimally the routing of vehicles and scheduling of deliveries, as well as the use of new technology vehicles with minimal fuel consumption and gas emissions. On this premise, the paper proposes a genetic algorithm that addresses the Vehicle Routing Problem with Time Windows and Simultaneous Pickups and Deliveries, while considering the type, characteristics and specifications of the vehicles used. This algorithm aims to minimize the distribution cost while also estimate CO2 emissions, and consequently how these attributes are affected by petrol, diesel, and electric vehicles in the logistics sector. Therefore, the algorithm is tested and evaluated in real-life distribution cases addressed by a logistics company in Greece. The results obtained from the algorithm are compared and evaluated, while proposals for improving the efficiency of deliveries, as well as for reducing greenhouse gas emissions and costs are made.

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Konstantakopoulos, G.D., Kechagias, E.P., Gayialis, S.P., Tatsiopoulos, I.P. (2023). Green Freight Distribution: A Case Study in Greece. In: Matsatsinis, N.F., Kitsios, F.C., Madas, M.A., Kamariotou, M.I. (eds) Operational Research in the Era of Digital Transformation and Business Analytics. BALCOR 2020. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-24294-6_6

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