Cost-Optimal Pathfinding Model for Multi-Echelon Logistics Network Design and Optimization: A Fourth-Party Logistics (4PL) Perspective

Abstract

The adoption and integration of e-commerce strategies into existing business models have allowed many companies to broaden their customer base and boost profits. However, the lack of a cost-efficient logistics planning model often results in the unsatisfactory performance of complex multi-echelon supply chain networks. As transportation planning and scheduling are typically managed via independent entities within the supply network, one key challenge is achieving maximum asset utilization rates considering production flow, logistics cost, and delivery time constraints. This study leverages digital twin capabilities to propose a 4PL-oriented heuristics search model for omnichannel logistics planning and scheduling. The approach aims to enhance transportation flow and resource utilization while shortening waiting times within multi-echelon networks. An industrial case study is featured to validate its cost-effectiveness.