Dynamic sustainable multiple-depot vehicle routing problem with simultaneous pickup and delivery in the context of the physical internet

PurposeThis paper proposes an approach to solve the vehicle routing problem with simultaneous pickup and delivery (VRPSPD) in the context of the Physical Internet (PI) supply chain. The main objective is to minimize the total distribution costs (transportation cost and holding cost) to supply retailers from PI hubs.Design/methodology/approachMixed integer programming (MIP) is proposed to solve the problem in smaller instances. A random local search (RLS) algorithm and a simulated annealing (SA) metaheuristic are proposed to solve larger instances of the problem.FindingsThe results show that SA provides the best solution in terms of total distribution cost and provides a good result regarding holding cost and transportation cost compared to other heuristic methods. Moreover, in terms of total carbon emissions, the PI concept proposed a better solution than the classical supply chain.Research limitations/implicationsThe sustainability of the route construction applied to the PI is validated through carbon emissions.Practical implicationsThis approach also relates to the main objectives of transportation in the PI context: reduce empty trips and share transportation resources between PI-hubs and retailers. The proposed approaches are then validated through a case study of agricultural products in Thailand. Social implicationsThis approach is also relevant with the reduction of driving hours on the road because of share transportation results and shorter distance than the classical route planning.Originality/valueThis paper addresses the VRPSPD problem in the PI context, which is based on sharing transportation and storage resources while considering sustainability.