IPIC2018: 5TH INTERNATIONAL PHYSICAL INTERNET CONFERENCE
IPIC2018 DOCTORAL CO ON SUNDAY, JUNE 17TH

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09:45-10:00 Session 2: Opening

Kick off of the 1st International Physical Internet Doctoral Colloquium with opening words of Iris vis.

10:00-11:30 Session 3A: Round 1: Presentations (Club Lounge)

Hyperconnected Mobile Buffer Storage Capacity Management
Presenter:          Louis Faugere
Discussant 1:     Ido Orenstein
Discussant 2:     Lienert Cosemans
Professor:          Eric Ballot

Delivery Process with Flexibility Using Automated Parcel Lockers
Presenter:          Ido Orenstein
Discussant 1:     Louis Faugere
Discussant 2:     Albert Schrotenboer
Professor:          Walid Klibi

Chair:
Gerlach van der Heide (University of Groningen, Netherlands)
10:00
Louis Faugere (Georgia Institute of Technology, United States)
Hyperconnected Mobile Buffer Storage Capacity Management

ABSTRACT. This paper deals with the dynamic management of mobile buffer storage capacity in the context of first and last mile delivery in omnichannel supply chains. Its main contribution is the conceptualization of a decision framework enabling to benefit from the advantages of distributed logistics systems while limiting capital expenditures. The paper first synthesizes insights from the current literature. It then defines a conceptual framework enabling the dynamic management of mobile buffer storage capacity and depicts the induced design and operational challenges, highlighting the potential benefits and trade-offs through an illustrative case. Finally, it provides directions for future research and innovation.

10:45
Ido Orenstein (Tel Aviv University, Israel)
Elad Sadan (Tel Aviv University, Israel)
Delivery Process with Flexibility Using Automated Parcel Lockers
SPEAKER: Ido Orenstein

ABSTRACT. In this study, we introduce a logistic model that is suited for delivery of small parcels to a set of service points (SPs) and present effective solution methods for it. While in traditional delivery model each recipient specifies a single location, where they wish to receive the parcel, when using SPs, many recipients may be indifferent between several locations, e.g., near their home address, near their office, or in their favorite shopping mall. If some of the recipients are ready to show some flexibility and provide the sender with more than one delivery location, it is possible to perform the delivery task in lower costs and shorter time. Our solution methods are based on the ideas of the saving heuristic, petal method and tabu search with large neighborhood. An extensive numerical study is conducted in order to evaluate our solution methods and demonstrate the benefit of our model, compared to the traditional, non-flexible, one. We also present a simulation study to demonstrate that our model can be adapted to a stochastic and dynamic environment.

10:00-11:30 Session 3B: Round 1: Presentations (Boardroom)

Steering past the language barrier: Managing multilingual workplace interactions in the European road haulage sector
Presenter:          Bianca Dijkstra
Discussant 1:    
Walid Mourhrib
Discussant 2:     Nayeon Kim
Professor:          An Caris

Physical Internet: Stakeholder Mapping
Presenter:          Walid Mourhrib
Discussant 1:     Bianca Dijkstra
Discussant 2:     Joren Gijsbrechts
Professor:           Benoit Montreuil

Chair:
Nicol Saaltink (University of Groningen, Netherlands)
10:00
Bianca Dijkstra (Rijksuniversiteit Groningen - Campus Fryslân, Netherlands)
Steering past the language barrier: Managing multilingual workplace interactions in the European road haulage sector

ABSTRACT. In Europe, international truck drivers need to navigate their way through the diverse (linguistic) landscape to keep the supply chain intact. In 2015 almost a third of logistics services in Europe were carried out by Polish haulers (European Commission, 2017; however, foreign language proficiencies of Polish international truck drivers diverge strongly. Numerous drivers make the transition from national onto international roads without formal foreign language education other than Russian, which can lead to communication issues. The present study aims to learn how multilingual workplace interactions in the European logistics sector take place, and how these interactions are affected by the language proficiencies and attitudes of the relevant stakeholders. Insights into these multilingual interactions inform theories about workplace communication in blue-collar workplaces, and pave the road towards a better integrated Europe in the process.

10:45
Walid Mourhrib (University of Huddersfield, UK)
Sahar Validi (University of Huddersfield, UK)
Samir Dani (University of Huddersfield, UK)
Physical Internet: Stakeholder Mapping

ABSTRACT. Current logistics paradigm has been practiced for decades. A new game changing logistic system named the Physical Internet (π) is proposed to shape the structure of supply chains. π aims to universally interconnect logistics networks in order to increase the efficiency and sustainability of logistics processes. However, this development requires the participation of different key logistics players. Different players, including researchers from academia, industry and government, have made contributions towards the challenging task of π realisation. ETP-Alice (or Alice) stands for European Technology Platform - Alliance for Logistics Innovation through Collaboration in Europe, is a European initiative set up to develop a comprehensive strategic roadmap for the adoption of the Physical Internet. However, the effective adoption of this system requires, partially but fundamentally, a consensus by all π stakeholders on the credibility of the big picture this system is proposing, which is the optimisation of the overall logistics practice. In this paper, the purpose is to conduct a stakeholders mapping of the Physical Internet using systems thinking approach, analyse role and motivations of each stakeholder, and present a rich picture of π stockholders. The rich picture will help build synergies between policy makers and industry with the main aim of adopting π and encourage more researchers, logistics practitioners and policy makers to join the game.

12:00-13:00 Session 4: Interactive plenary session on publishing paper on Physical Internet

A question and answer session with Eric Ballot and Benoit Montreuil.
Central theme: “Learning how to position current Physical Internet research into existing literature in order to enable publications in high-quality scientific journals”

14:00-15:30 Session 5A: Round 2: Presentations (Club Lounge)

Hyperconnected Physical Internet Hubs
Presenter:          Shannon Buckley            
Discussant 1:     Albert Schrotenboer
Discussant 2:     Bianca Dijkstra
Professor:          An Caris

A decomposition framework for routing and transportation in the physical internet
Presenter:          Albert Schrotenboer
Discussant 1:     Shannon Buckley
Discussant 2:     Ido Orenstein
Professor:          Walid Klibi

Chair:
Gerlach van der Heide (University of Groningen, Netherlands)
14:00
Shannon Buckley (Georgia Institute of Technology, United States)
Benoit Montreuil (Georgia Institute of Technology, United States)
Hyperconnected Physical Internet Hubs

ABSTRACT. The current trend in the parcel logistics industry is towards customers having ever greater power. Thus, to stay competitive, service providers must offer a broader range of more convenient products, which allow customers to receive their goods not only faster, (on the order of a day, or even a few hours), but also at more specific times. This trend presents major challenges for the service providers because supply chains are already suffering from many inefficiencies, including empty travel and shipping air. To assist with accomplishing this new challenge, this paper focuses on gaining efficiencies within the parcel logistics hubs. Specifically, this is achieved by utilizing modular containerization, in the form of PI containers, and pre-sorting, to minimize a parcel’s required touches and time spent within the hub. We review the current state-of- the-art sorting techniques as well as the relevant Physical Internet(PI) literature about hyperconnected crossdocking hubs and PI containers. Then we introduce methods for pre-consolidation with modular containers. To finish, we present our experiment using a simulated hub that combines consolidated modular containers with time-phased sorting techniques to achieve greater efficiencies with respect to resource utilization and parcel time in hub

14:45
Albert Schrotenboer (University of Groningen, Netherlands)
Iris Vis (University of Groningen, Netherlands)
A decomposition framework for routing and transportation in the physical internet.

ABSTRACT. The view on traditional routing problems (e.g. the Vehicle Routing Problem) and service network design problems needs to be altered for applications in the Physical Internet. Currently, routing and transportation patterns explicitly determine which pickups or deliveries are being performed. In the Physical Internet, such routing and transportation patterns need to be designed without explicitly assigning the transported goods in those patterns. We take this viewpoint while solving the well-known Pickup and Delivery Problem. We decompose the problem in transportation patterns and transportation movements. The former consists of all paths and routes that can be constructed, and the latter determines the movements of the individual goods over the transportation patterns. This will allow us to solve variants of the Pickup and Delivery Problem with transfers, where goods can use multiple modes of transportation to move from the origin to destination location, which are thought to be unsolvable with current OR practices.

14:00-15:30 Session 5B: Round 2: Presentations (Boardroom)

The Role of Maritime Ports in the Physical Internet
Presenter:          Patrick Fahim
Discussant 1:     Isabella Sanders
Discussant 2:    
Walid Mourhrib
Professor:          Benoit Montreuil

Hyperconnected Fresh Supply Chains
Presenter:          Isabella Sanders
Discussant 1:     Patrick Fahim
Discussant 2:     Roel Post
Professor:          Eric Ballot

Chair:
Nicol Saaltink (University of Groningen, Netherlands)
14:00
Patrick Fahim (Delft University of Technology, Netherlands)
The Role of Maritime Ports in the Physical Internet

ABSTRACT. Through its contribution to the carbon footprint and traffic congestion, today’s transport and logistics operations are often considered to be non-sustainable from an economic, environmental and societal perspective. As a means to counter these negative external effects, while simultaneously contributing to solve efficiency problems within transport and logistics, recently, many innovations have been made in terms of business models, technologies and best practices. One of these innovations, which proposes a “paradigm shift” in the field of transport and logistics to ultimately achieve economic, environmental, and societal efficiency and sustainability, is the Physical Internet (PI). Despite their promises, major innovations, such as the PI, cause much uncertainty for stakeholders regarding the development of the transport and logistics system. By means of carrying 80% of global trade over sea, maritime ports are considered as global trade enablers, and therefore, stakeholders with extreme importance. Hence, the proposed research aims to provide maritime ports with recommendations to effectively react to the expected development of the global maritime freight system in the PI. The research is subdivided into three design cycles: (1) Scenarios, (2) Model, and (3) Policy. These design cycles will provide insights into possible future developments of the PI and maritime ports from both a qualitative (scenario development) and quantitative (mathematical modelling) perspective. In addition, recommendations will be formulated by means of developing a dynamic adaptive policy pathway that flexibly takes into consideration future uncertainties.

14:45
Isabella Sanders (Georgia Institute of Technology, United States)
Hyperconnected Fresh Supply Chains

ABSTRACT. This proposal studies Fresh Supply Chains and then explores prospects for improvements within them. The improvements focus on using Physical Internet principles to create Hyperconnectivity within Fresh Supply Chains. This leads into aspects of the current state of a few fresh supply chains to serve as examples. Within these examples, potential opportunities for improvements in the corresponding supply chains are identified and solutions are offered. The opportunities focus on improving packaging systems through modular π-containers as well as improving overall infrastructure through an omnichannel business model. The rest of the paper delves into the author’s future research plans for her career.

16:00-17:30 Session 6A: Round 3: Presentations (Club Lounge)

Stochastic Inventory Allocation and Deployment in Hyperconnected Fulfillment Networks
Presenter:          Nayeon Kim
Discussant 1:     Roel Post
Discussant 2:     Patrick Fahim
Professor:          Eric Ballot

The impact of supplier and product characteristics on Vendor-Managed Inventory
Presenter:          Roel Post
Discussant 1:     Nayeon Kim
Discussant 2:     Isabella Sanders
Professor:          Benoit Montreuil

Chair:
Gerlach van der Heide (University of Groningen, Netherlands)
16:00
Nayeon Kim (Georgia Institute of Technology, United States)
Walid Klibi (Kedge Business School, France)
Benoit Montreuil (Georgia Institute of Technology, United States)
Stochastic Inventory Allocation and Deployment in Hyperconnected Fulfillment Networks
SPEAKER: Nayeon Kim

ABSTRACT. We study an inventory allocation and deployment problem of an e-manufacturer under stochastic demand over multiple period. The e-manufacturer that lists its product in multiple e-retailers' platforms is often obligated to reserve certain quantity of inventories to each retailer. The manufacturer has to allocate inventories smartly to minimize lost sales while avoiding stockout penalty. Meanwhile, if the manufacturer is in charge of inventories and shipping to customer from its fulfillment centers, it must deploy inventories over its fulfillment network to better serve future customer orders satisfying growing needs for fast delivery. When inventories are not available at nearby fulfillment centers, it may lose customers failing to offer a fast delivery option. Such problem can be more critical in a context of hyperconnected supply chain which has larger potential for service level improvement. We link the inventory allocation problem and deployment problem and model this deployment-allocation problem as a multi-stage stochastic optimization.

16:45
Roel Post (University of Groningen, Netherlands)
Paul Buijs (University of Groningen, Netherlands)
Jaap Wieringa (University of Groningen, Netherlands)
Hans Wortmann (University of Groningen, Netherlands)
The impact of supplier and product characteristics on Vendor-Managed Inventory
SPEAKER: Roel Post

ABSTRACT. Many academic studies have shown how transferring control of inventory to a supplier in the form of Vendor Managed Inventory (VMI) can improve the performance of a supply chain. However, also cases have been reported in which the VMI program was not successful or even withdrawn. To understand these uneven outcomes of VMI, a better understanding of the underlying mechanisms, and how they are affected by supplier and product characteristics, is needed. In this study, we use unique transaction and survey data to observe how the introduction of VMI by a large European retailer affects their supply chain’s performance. We show which mechanisms are most relevant for the different suppliers and products. Our findings suggest that the impact of the complexity in inventory control has a stronger influence on the supplier’s actions than direct financial incentives. Furthermore, the findings confirm that there is no single effect of implementing of VMI, but show that different types of suppliers can profit in unique ways.

16:00-17:30 Session 6B: Round 3: Presentations (Boardroom)

A deep reinforcement learning approach for synchronized multi-modal replenishment
Presenter:          Joren Gijsbrechts
Discussant 1:     Lienert Cosemans
Discussant 2:     Shannon Buckley
Professor:          An Caris

Option contracts in synchromodal transport
Presenter:          Lienert Cosemans
Discussant 1:     Joren Gijsbrechts
Discussant 2:     Louis Faugere
Professor:          Walid Klibi

Chair:
Nicol Saaltink (University of Groningen, Netherlands)
16:00
Joren Gijsbrechts (Katholieke Universiteit Leuven, Belgium)
Robert Boute (Katholieke Universiteit Leuven, Belgium)
A deep reinforcement learning approach for synchronized multi-modal replenishment

ABSTRACT. We optimize the multi-modal replenishment process of a distribution center: a setting where multiple transport options are available, each with a different cost and transport lead time. We develop a smart algorithm, leveraging machine learning techniques, to solve this analytically intractable problem. Distinguishing features of our model are that it captures the full delivery schedule of pipeline inventories while being more versatile to include practical limitations such as transport service schedules.

16:45
Lienert Cosemans (UHasselt - Hasselt University, Belgium)
Inneke Van Nieuwenhuyse (UHasselt - Hasselt University, Belgium)
An Caris (UHasselt - Hasselt University, Belgium)
Option contracts in synchromodal transport (Research proposal)

ABSTRACT. Synchromodality is a relatively new concept in freight transport operations, related to intermodal transport. In synchromodal transportation, the shipper uses different transport modes in parallel on the same route (for instance, intermodal transportation combined with truck-only transportation), aiming for an optimal volume split across the modes. In this PhD, the goal is to investigate the use of different types of contracts in synchromodal transport, in view of increasing the share of intermodal transportation, and in view of sharing the risks between the shipper and the transportation company. Currently, shippers often make “mode-free” bookings and is guaranteed that the goods will arrive to their destination on time; the choice of transport mode is made by the transport company. This type of contract puts the bulk of the responsibility/risk with the transport company, which needs to meet the service level agreement. We want to investigate the impact of option contracts (analogous to financial options), which imply that the shipper reserves intermodal capacity beforehand, and decides on the actual use of this capacity depending on demand. This actually shifts the responsibility regarding transport choice back to the shipper, who aims to minimize the total logistics cost (not only transportation cost, but also inventory-related costs). We wish to analyze under which conditions such option contracts can be beneficial to both parties (shipper and transportation company), in terms of minimizing expected costs, when compared to a mode-free contract. We also wish to analyze the impact on risk, by considering the variance of the costs. This may open up the opportunity for multi-objective optimization, as decision makers are typically risk-averse, implying that they trade off increased risk with increased expected profit/decreased expected costs.