Resilient design of hyperconnected multiactor Physical Internet supply chain networks

The Physical Internet (PI) is a relatively new logistics paradigm defined as a supply chain framework whose physical components are standardized and optimized with the main objective of increasing the supply chain's overall efficiency, resilience, and sustainability. Given the novelty of the PI concept, there is a lack of scientific literature addressing it from a quantitative point of view, although formulating and solving mathematical models representing resilient PI problems are relevant and innovative issues for academics, practitioners, and governments. In this work, we present a multiperiod mixed-integer programming model to design PI-enabled supply chain networks, in which both cost and resilience are optimized. Hyperconnection and multiple actors are considered in the proposed models. A lexicographic method is proposed to solve these models with multiple objectives, which includes a modified version of the hypervolume measure. Both newly designed and adapted benchmark instances are employed to assess our models' performance. We compare this model against a traditional proprietary logistics model and a horizontal collaboration model between two companies. Results show that hyperconnectivity increases resilience by (Formula presented.) and reduces the supply chain network design costs by (Formula presented.). The risk of not satisfying the destination's demands is reduced as well. Furthermore, in the PI context, we propose a minimax model that has been proved to increase cost equity between the considered actors. This model reduces the average difference between the costs of these actors from (Formula presented.) to (Formula presented.).