Operations management in distribution networks within a smart city framework.

Abstract

This article studies a vehicle routing problem with environmental constraints that are motivated by the requirements for sustainable urban transport. The empirical research presents a fleet planning problem that takes into consideration both minimum cost vehicle routes and minimum pollution. The problem is formulated as a mixed integer linear programming model and experimentally validated using data collected from a real situation: a grocery company delivering goods ordered via e-channels to customers spread in the urban and metropolitan area of Genoa smart city. The proposed model is a variant of the vehicle routing problem tailored to include environmental issues and street limitations. Its novelty regards also the use of real data instances provided by the B2C grocery company. Managerial implications are the choice of both the routes and the number and type of vehicles. Results show that commercial distribution strategies achieve better results in term of both business and environmental performance, provided the smart mobility goals and constraints are included into the distribution model from the beginning.