Smart Material Handling Solutions for City Logistics Systems

Abstract

Globalization, the growth of the world population, urbanization and the growth of the volume of the flow of goods have generated numerous problems in city logistics (CL). The opportunity to solve them is found in various fields by defining and implementing initiatives, concepts, measures, modern technologies and scenarios. The efficiency of the solution largely depends on the efficiency of logistics centers, which is one of the key subsystems of CL. The requirements for the reliable delivery of goods to customers in urban areas are conditioned by the efficiency their order fulfillment in logistics centers. Therefore, optimizing material handling (MH) time and costs aimed at reducing delivery errors, minimizing damage to goods and increasing customer service efficiency is directly conditioned by the automation of MH in logistics centers. Accordingly, this paper aims to rank and select smart MH solutions in logistics centers where deliveries are prepared for the supply of the city area. This paper proposes four smart solutions for a real company, and fourteen criteria are selected for the evaluation. A new hybrid Multi-Criteria Decision-Making model that combines the Fuzzy Analytic Hierarchy Process method, used to determine the criteria weights, and the Fuzzy COmprehensive distance-Based RAnking (FCOBRA) method, used to rank the alternatives, is proposed. The application of the model shows that the best alternative is the implementation of an autonomous forklift, which can greatly automate logistics activities and reduce the rate of delivery errors. The main contributions of this research are the definition of smart solutions, a framework for their evaluation and a new model for their ranking.