A City Logistics Distribution Model: A Physical Internet Approach

As a new logistics system, Physical Internet (PI) provides a solution to cope with the continuous rise of urban logistics demand by exploring same-level and cross-level paths and flattening. This research suggests a PI-based urban logistics distribution cost minimization model based on the examination of the primary elements influencing PI distribution, intending to maintain the logistic transportation process' integrity. This proposed model enhances the flexibility of goods operation and reduces the global cost of logistics distribution using the interconnected and open PI logistics distribution mode. The experimental results show that the distribution cost of the PI logistics model is significantly better than that of a traditional logistics model. The elastic and cost advantages relatively grow as the infrastructure for distribution scales up and the interruptions from emergencies occur.