Urban population increase results in more supply chain operations in these areas, which leads to increased energy consumption and environmental pollution. City logistics represents a strategy of efficient freight transportation and material handling to fulfill customer and business demands. Within the frame of this paper, the authors describe an optimization model of a multi-echelon collection and distribution system, focusing on downtown areas and energy efficiency, sustainability, and emission reduction. After a systematic literature review, this paper introduces a mathematical model of collection and distribution problems, including package delivery, municipal waste collection, home delivery services, and supply of supermarkets and offices. The object of the optimization model is twofold: firstly, to design the optimal structure of the multi-echelon collection and distribution system, including layout planning and the determination of required transportation resources, like e-cars, e-bikes, and the use of public transportation; and secondly, to optimize the operation strategy of the multi-echelon supply chain, including resource allocation and scheduling problems. Next, a heuristic approach is described, whose performance is validated with common benchmark functions, such as metaheuristic evaluation. The scenario analysis demonstrates the application of the described model and shows the optimal layout, resource allocation, and operation strategy focusing on energy efficiency.
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