City Logistics Teodor Gabriel Crainic ESG UQAM CIRRELT - CRT
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1 City Logistics Teodor Gabriel Crainic ESG UQAM & CIRRELT - CRT CIRRELT
2 A Few Sources for Information Best Urban Freight Solutions Conferences and workshops Best practice handbook City Logistics Institute Three International conferences (next: 2007) A book, The European projects, US-DOT, VERTIS web sites 2
3 Presentation Summary Freight transportation in urban areas The City Logistics idea Studies and initial deployments A two-tier system and some models Perspectives 3
4 Freight Movements in Urban Areas Essential to most economic and social activities Vital link in the supply chain from producers to customers: Supplies of stores, homes, offices The means to keep cities clean Major source of employment Major disturbing factor Interference with passenger traffic Cities are polluted Cities are not safe 4
5 Freight Movements in Urban Areas (2) Significant part of traffic Tokyo (94): 67% of total cargo (tonnage) with origin and destination in city Rome (00): over load&unload/day in Centro storico Commercial distribution to supply stores, offices, industries, tourist infrastructures,... Individual pickup and delivery activities at private addresses, stores, companies, offices,... Express and regular courier services Access to major (intermodal) facilities: ports, airports, rail yards, less-than-truckload terminals, Through-traffic, Dangerous goods, 5
6 Freight Movements in Urban Areas (3) Large number of different (dedicated) vehicles Average load levels: LOW Empty movement levels: HIGH Rome (00): 75% of truck trips for 1 destination only Average vehicle load < 20% of vehicle capacity Volume rapidly increasing E-business, Express courier, JIT/door-to-door, Reverse logistics, Major and heavy world-wide trend: urbanization Large cities become larger More cities become large 6
7 Freight Movements in Urban Areas (4) Significant part of traffic-related problems Congestion, noise, safety, pollution, Urban network critically congested Rome (00): Over vehicles enter city between 8h00-9h00 am Fierce competition for street and parking space Rome (00): Reserved delivery parking space used for 5% of truck parking only Double (triple) parking of trucks for pickup and delivery (cars as well!) 7
8 The Tradition No planning/control methodology Freight transportation = private activities performed and supplied by private means Urban (regional) transport planning models target passenger traffic and consider aggregate truck flows only Usual controls through regulation Limited access hours Restricted access to selected city zones Parking restrictions Do not work very well... 8
9 A Brief History Beginning of the 70 s Several studies and research projects on both sides of the Atlantic International conferences Limited yield and public enthusiasm Traffic regulations to avoid heavy truck presence in cities and limit impact of truck traffic on car movements 1975 end 80 s: almost nothing 9
10 A Brief History - The 90 s and Beyond Renewed and steady interest in urban freight transportation issues Increased urbanization and traffic increased traffic-related problems New public awareness and pressure (the politicians take notice ) 10
11 A Brief History - The 90 s and Beyond (2) A more holistic view of (freight) transportation From Intelligent Vehicle-Highway Systems (IVHS) to Intelligent Transportation Systems (ITS) The US-DOT Intermodal Surface Transportation Efficiency Act The European projects: intermodal as keyword Many projects and pilot implementations International conferences The City Logistics concept ( brand ) A lot of work to do 11
12 Emerging Needs Analyze (understand), control, reduce freight vehicle movements within cities to Reduce congestion & pollution & increase mobility Improve living conditions Reduce/control number and dimensions of freight vehicles operating within the city Improve efficiency of movements Reduce empty vehicle-km Kyoto targets (the spirit, at least) Do not penalize city center activities!! 12
13 Enabling Factors Intelligent Transportation Systems : CVO, AFMS Vehicle/cargo location and tracking systems Increased on-board computing capabilities Improved vehicular technologies Information technologies Traffic management centers and surveillance technologies Operations Research: Advanced Fleet Management Systems (AFMS) Planning Real-time operations and management 13
14 The Fundamental Idea City Logistics Stop considering each shipment and company (and vehicle) individually Consider them as components of an integrated logistics system Consolidation and coordination Coordination of shippers and carriers Consolidation of several shipments of different shippers, carriers, and deliveries by the same (improved, more energy efficient) vehicle City Logistics: Optimize this logistics system 14
15 Main R&D Avenues Design and optimization of city logistics system Terminal location, design, operations Real-time operations (routing, dispatching) Underground freight systems Mostly studies: Tokyo downtown, Amsterdam airport, Very interesting but needs work Impact and evaluation models and methods Not many yet 15
16 The City Distribution Center Approach Based on the utilization of a facility where shipments are consolidated prior to distribution: the intermodal or logistics platform or City Distribution Center (CDC) Most activities are related to distribution and less to pick up 16
17 Single-Tier Single-CDC City Logistics City Distribution Center Customer zone Urban-truck 17
18 The City Distribution Center Approach Based on the utilization of a facility where shipments are consolidated prior to distribution: the intermodal or logistics platform or City Distribution Center (CDC) A single-tier system Used in most projects, including the pilot implementations Limited number of shippers and carriers Limited usage of ITS technologies (initially) City administration involvement (some) but traffic regulations not adapted 18
19 Distribution Licenses Initial idea: Holland Limited number of licenses (permits) for urban distribution Operating rules: e.g., operate circuits, on-board loading/unloading equipment Distribution advantages (e.g., extended hours) Strong local and central government involvement 19
20 City Logistik Initial idea: Germany Spontaneous grouping of carriers for coordination and consolidation activities Rather light government involvement ( facilitator, no particular traffic rules) Private initiative At same time in the (near) future, the project must prove self-sustainable and profitable ( ) Many applications 20
21 Public Service Initial idea: Monaco All large vehicles (> 8 tons) forbidden into the city and must deliver to the CDC from where distribution is ensured by unique carrier Specialized firm, material, personnel Particular characteristics of the Monaco state/municipality 21
22 Status License approach Limited experiments It works Most experiences on the more or less voluntary grouping of carriers around a distribution center: Mix outcomes Consolidation extra manipulations, costs, delays Limited utilization of ITS and decision technology Limited adaptation of traffic regulation Short-term financial self-sufficiency not attained Insufficient involvement of authorities and customers 22
23 Status (2) Monaco approach Starts to be adapted to other locations Mostly small to medium cities in Europe Similar approaches to particular city zones in Japan 23
24 Status (3) Experiences are continuing Increased functionalities for the CDC Increased utilization of information (electronic data exchanges) and decision (routing software) technologies Clean vehicle utilization is growing Various partnership and organizational structures are tried out 24
25 Personal Perspective Large and congested cities require several distribution platforms of possibly different characteristics and functionalities A pro-active role for the city similar to the one in public transport (!!) Integrated policy regarding vehicle access and the organization of freight movements within the city Public-private understanding, collaboration, and innovative partnerships ITS and Operations Research 25
26 A Two-Tier City Logistics System Coordination of freight movements and actors (shippers, carriers, customers) within the (central or entire) urban area City Distribution Centers (CDC) Satellite CDC - satellites Consolidation of individual demands (customers) Limited and controlled access of vehicles to the city center Utilization of adapted, clean vehicles Utilization of ITS and Operations Research methods and technologies 26
27 Satellite City Logistics Terminals City Distribution Center Customer zone Satellite 27
28 Satellite City Logistics Movements City-freighter Urban-truck 28
29 Main Idea Urban trucks move cargo From City Distribution Centers (external zones) To satellite platforms: satellites Urban trucks travel as little as possible through inner city Transdock-type of operation at satellites No storage facilities To customers by using dedicated vehicles on circuits (Reverse operations as well, of course) (Vehicles are loaded as fully as possible) 29
30 Terminals: City Distribution Centers (Intermodal or Logistic Platforms) Link the city to the region, the country, the world Located close to access or ring highways or within air, rail or navigation terminals Accommodate long-haul vehicles and urban (smaller) vehicles: the urban-trucks and city-freighters Storage and sorting/consolidation activities (+ accounting, legal counsel, brokerage, etc.) 30
31 Terminals: Satellites In large cities limited number of CDC located far from central city Longer vehicle trips Difficulties in fully using the vehicle capacities, Idea: bring cargo closer to inner-city by fully loaded urban trucks (on designated corridors), transfer to small energy-efficient vehicles for circuit delivery Better vehicle utilization, extra handling Optimize the system for total system cost 31
32 Satellites Very light structure (human) Use existing facilities (e.g., city bus terminals, tourist bus parking lots) Transfer direct from vehicle to vehicle Vehicles at satellite on a need-to-be-there basis Need for ITS and real-time control 32
33 City-freighters Relatively small capacity Standardized Environment-friendly: electric or hydrogen-based traction Several R&D proposals, projects, and demonstrations of such vehicles and standardized cargo packing 33
34 Issues and Decisions System design Short-term planning Real-time operation, control, and dispatch of vehicles and terminal activities (ITS) Politics (public involvement), social, working relations, taxation, etc. 34
35 System Design Location and design of CDC Location of satellites and customer allocation Fleet dimensioning Urban-truck corridors 35
36 System Design Location and design of CDC Location of satellites and customer allocation Fleet dimensioning Urban-truck corridors 36
37 Satellite Location Model Proof of concept (quite preliminary) based on a real city: Rome Analyze the logistics structure of the inner city Evaluate the proposed system 37
38 Given Intra-muros customer-zone definition Aggregation of commercial activities & locations Geographically homogeneous (Supply/Demand) External zones (Supply/Demand) Commodity definition Freight urban corridors (for urban trucks) Vehicle characteristics Possible satellite sites 38
39 Determine Selection of satellites Allocation of each customer zone to one or more satellites Gross fleet-size estimation 39
40 Vehicles City-freighters Type Capacity Cost (operations) Urban trucks Type Capacity Cost (social, operations) 40
41 Satellites Location Fixed cost = Operation cost (manpower) + Undesirability factor (social impact) Capacity (for the opening hours) # urban trucks # city-freighters Minimum utilization level Average handling time Average handling cost 41
42 Network City network Average travel time (accounts for congestion) Undesirability factor: Classifies network arteries according to the maximum tolerated level of freight vehicle traffic Simple congestion representation no capacity single path for each demand Model defined on un-capacitated service network CDC satellite service arc Satellite customer zone service arc Average travel times 42
43 Multi-commodity Location-Allocation Decision variables: Locate satellites (Boolean) Distribute (commodity) flows (continuous): from CDC to customer zone through satellite, using given types of urban trucks and city-freighters Minimize total cost Demand satisfaction Minimum satellite activity Satellite capacity (linking) constraints in terms of # of urban truck and city-freighter served 43
44 Rome Case Study Historical centre 51 commercial zones customer zones Possible satellite locations: 41 Public transit depots + Tourist bus parking lots (29) Platforms at city gates (12 hypothetical) CDC: 12 The main entry points in Rome 1 urban truck and 1 city-freighter types (lack of data) Typical wages and vehicle characteristics in Italy 44
45 Rome Case Study (2) Demand data from official studies Import (85%) largely outweighs exports Aggregate figures of vehicles entering city 7h00-11h00 (legal distribution time window) Characteristics of each commercial zone known in terms of population, # of stores, total store surface and # of employees, etc. Travel times from actual urban planning model (EMME/2) 45
46 Results Model solved efficiently by state-of-the-art commercial solver until 400 customer zones Several scenarios (the new satellites) Reduction in vehicle flows compared to estimated number of trucks Very limited increase of total delivery time Results are very encouraging but a more thorough experimentation is in order In the meantime, we continue 46
47 Issues and Decisions System design Short-term planning Access times and routes of urban trucks Demand routing City-freighter fleet allocation Personnel scheduling Real-time operation and control (ITS) 47
48 Short-Term Planning Objectives Control & schedule access of vehicles into the city Schedule inter-city vehicles Satisfy demand on time Plan an efficient utilization of the city-freighter fleet Plan an efficient utilization of the satellites Empty movement control Operating costs Personnel scheduling 48
49 Problem Description Planning of the next period of operations, performed a short time before ( the day before ) Most demand is known Assumed to be at a CDC Latest due date known Logistics structure known Satellite location and capacity Customer zone assignment City access/egress corridors known 49
50 Problem Description (2) Vehicle types and characteristics known Management of inter-city movements performed by external agents based on city-logistics decisions Vehicles are in sufficient numbers Time-dependent congestion measures known 50
51 Short-Term Planning Objectives Control & schedule access of vehicles into the city Schedule inter-city vehicles Satisfy demand on time Plan an efficient utilization of the city-freighter fleet Plan an efficient utilization of the satellites Empty movement control Operating costs Personnel scheduling 51
52 Modelling Approach Time discretization Set of urban-truck routes Departure time & CDC, set of satellites, Design (selection) {1,0} decision variable / route Sets of city-freighter work assignments (by c-f type) Departure time from depot, [satellite, customer route], ends at a depot at end of period Design {1,0} decision variable / route 52
53 Urban-Truck Routes Decision: Which service to run? s y(i) = {1,0} s e 53 R(k): t(r(k))=t; s&s R(j): t(r(j))=t+1 R(i): t(r(i))=t
54 City-freighter Work Assignments s(t) Time windows Service times d(i) i s(t + ) s (t + ) d(j) j k d(k) s (t + ) Arrive on time!! 54
55 Demand z e 55 d(e,z,p,t,[a,b])=d(k)
56 Modelling Approach (2) Demand CDC & availability time Customer (zone) and due time (technical requirements) Set of demand itineraries {urban-truck route, satellite, city-freighter work assignment} Feasible with respect to d Time (& technical) requirements of demand Synchronization at satellite Design (selection) {1,0} decision variable / itinerary 56
57 Demand Itineraries s z s Decision: Which itinerary to use? How much to assign? (split-delivery variant) z(k,j)={1,0} x(k,j) 0 M 1 (k):{e,r(i),t(r(i)), s(m 1 (k))=s(r(i))=s} e 57 d(e,z,p,t,δ)=d(k)
58 Modelling Approach (3) Minimize total vehicle costs Demand satisfaction Urban-truck capacity (linking constraints) City-freighter capacity on each leg (linking constraints) Satellite capacity in # trucks & # city-freighters Split or un-split deliveries 58
59 Modelling Approach (4) Large mixed-integer program Three sets of path variables Urban-truck routes City-freighter routes Demand itineraries Linked and synchronized Hierarchical decomposition proposal: A Two-Tier model Demand distribution + urban-truck service design & scheduling City-freighter allocation & management (circulation) 59
60 First Tier Model Approximate customer service (route) times our of satellites Select Urban-truck routes and schedules Demand itineraries 60
61 Formulation Mixed integer program: Scheduled service network design Minimize total cost of system (services & itineraries) Demand satisfaction Urban-truck capacity (linking constraints) Satellite capacity in # trucks & # city-freighters Split or un-split deliveries Service network design solution approaches 61
62 Service Design Model Un-split Delivery Service capacity Single itinerary Satellite capacity 62
63 Second Tier: City-Freighter Fleet Management Integer city-freighter flows (by type) Out of satellites (at each period) To serve particular customers (zones) Requirements at each satellite and period Determine (path versus arc-based formulations) City-freighter routes to serve the satellite demand To what satellites (or depots) to send vehicles following a distribution route such that they become available on time (no waiting at satellites) Account for fleet size 63
64 City-freighter Circulation Issues s t t + 1 z(s) Which one is the last customer? Which satellite? What period? 64
65 Modelling Approaches (Arc Formulations) General Fleet Management Model Time-dependent, multi-depot, heterogeneous fleet vehicle routing with (tight) time windows Additional constraints: synchronization Decomposition approach Many routing problems Multi-commodity network flow 65
66 City-freighter Fleet Management s(t) i d(i) s(t + ) s (t + ) d(j) Time windows Service times j k d(k) s (t + ) Arrive on time!! g(t) g(t + ) 66
67 Fleet Management Model: Routing First customer on route Flow cons. satellite Single ass. customer2route Flow cons. customer node Flow cons. depot 67
68 Fleet Management Model: Timing Customers Satellites Customers City-freighter capacity 68
69 Solution Approaches General Fleet Management Model Head-on approach: meta-heuristics and parallelism Decomposition ( lose time coordination at satellites) Routing problem for each satellite/time period/cityfreighter type # of city-freighters & time availability for repositioning Many (small) problems in parallel Circulation & synchronization: Multi-commodity network flow separable by city-freighter type Simplified version of previous network: Node = satellite at time period 69
70 City-Freighter Circulation Network s(t-) F(st) s(t) s(t+) s (t-) s (t) s (t+) s (t-) s (t) s (t+) g(t) g(t ) g(t ) 70
71 Relation to Single-Tier Approaches No satellites No synchronization at satellites All vehicles are city-freighters (urban-trucks) The problem reduces to routing the city-freighters to satisfy demand at minimum total system cost Circulation aspect still present (multiple depots) BUT, the design dimension still present: When should the route start (demand be served, vehicle leave)? Issue: what customers (demand) to serve by a given route? Cannot separate the design and routing aspects 71
72 Single-Tier Model: Path-based Formulation Path = Vehicle route from depot t=0 to depot t=t+1 Serves groups of customers each passage through a CDC Feasible with respect to Customer timing requirements Vehicle capacity Multi-depot set covering formulation Minimize total travel and service cost of the selected routes (paths) Fleet dimension given 72
73 Single-Tier Single-CDC Service & Routing Model Unsplit delivery Single route per vehicle Fleet dimension 73
74 In Development Algorithms and codes and Alternate formulations 74
75 Technological Issues A lot of IT / ITS and vehicular (packaging) technology already available. Decision support systems planning and operation models are being investigated and built Data more complex (human factors ) What is needed? What is available? How to get what is needed? 75
76 General Issues Social, political, administrative, financial City-freighter fleets: public/private? But coordinated operations (a public service) Satellites increase the # of handling operations (costs and delays) but final cost of goods should not increase Public financing? (environment taxation?) System must be efficient System must be profitable (i.e., globally) Labor-relation issues 76
77 General Perspectives The issue of freight transportation in urban areas is here to stay A number of systems may be simultaneously implemented Better utilization of existing infrastructure (e.g., rail or subway lines) is promising Fully automatic underground systems may be interesting in particular settings Coordination + consolidation appears the most promising 77
78 O.R. Research Perspectives Real-time operations and control (dispatching, rerouting) of vehicles and terminals under a coordination & consolidation policy Short-term planning of operations Personnel scheduling Cargo holding policies (at out-of-area terminals) Loading vehicles and relations to dynamic control Fleet dimensioning and selection ( what type of vehicle and packing? ) 78
79 O.R. Research Perspectives Corridor selection for each type of vehicle Selection and dimensioning of terminals Integrating city-logistics city Planning methods (static) ITS systems and methods (ATMS, ATIS) (dynamic) 79
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