Towards understanding network topology and robustness of logistics systems

Abstract

Advanced integration of logistics systems has been promoted for the sake of competitiveness and sustainability. Such efforts will enable more globally optimal and flexible operations by efficiently utilizing transportation capacity. At the same time, interconnection of transport operations increases complexity at a network level, which reduces the predictability of the response of the system to disruptions. However, our understanding of the behavior of such systems is still limited. In particular, the topology of the network, which changes as the systems are integrated, is an important factor that affects the performance of the entire system. Knowledge of such mechanisms would be useful in the design and evaluation of integrated logistics. Here, we developed a simple mathematical model that extracts the essence of the problem and performed extensive numerical experiments by Monte Carlo simulations for three scenarios that mimic changes in demand: (i) locally and temporally increased traffic demand, (ii) globally and temporally increased traffic demand, and (iii) permanent change in demand pattern, under various conditions on the type of route-finding algorithm, network structure, and transportation capacity. Adaptive route-finding algorithms were more effective in square lattice and random networks, which contained many bypass routes, than in hub-and-spoke networks. Furthermore, the square lattice and random networks were robust to the change in the demand pattern and temporal blockage of delivery paths (e.g., due to high demand). We suggest that such preferable properties are only present in networks with redundancy and that the bypass structure is an important criterion for designing network logistics.