Model and Data Driven Model for Sustainable E-Commerce

Logistics Platform

Dr. Saurabh Pratap

Assistant Professor
Department of Mechanical Engineering,
Indian Institute of Technology (BHU), Varanasi
 Outlines

 Introduction
 Literature review
 Research gaps
 Research objectives
• Maximization of the TER generations with minimization of CLSC
cost
• Minimization of total cost of reverse-to-forward logistics in CLSC
network
 Conclusion
 Applications
 Introduction
E-commerce
• The buying and selling of goods or services
using the internet and the transfer of money
and data to execute these transactions
• Four major types of e-commerce business
Figure.1. Trend of B2B e-commerce
models (https://docmation.com)
• Business to Business (B2B)
• Business to Consumer (B2C)
• Consumer to Business (C2B)
• Consumer to Consumer (C2C)

Figure.2. Trend of B2C e-commerce (

https://www.verifiedmarketresearch.com)
 Introduction Contd.

Figure.3. Revenue in the e-commerce market in India Figure.4. The number of users (in million) in the
in different sectors e-commerce market in India
Table 1: Revenue in the e-commerce market (https://statisticstimes.com/)
 Introduction Contd.
Supply chain and logistics management

Figure.7.
Figure.5. Logistics
Supply chain management
management (
( https://cdn-ima
https://5.imimg. ges-1.medium.c
com/ om
) )

Figure.6. Agro Figure.8.

food supply Sustainable
chain logistics
management system (
(https://cdn.stee https://link.spr
mitimages.com/ inger.com/
) )
 Introduction Contd.
Sustainability and circular economy

• In recent era, the concepts of

development of sustainability and
circular economy (CE) is booming
in the business world
• Its withdrawn the attention of the
policymakers, practitioners, and
researchers, Saidani et al., 2019
Figure.9. Linear versus circular economy,
Saidani et al., 2019
 Literature Review
Table 2: Key Literatures based on E-Commerce
Authors
Descriptions
& Years
Xu et al. Developed an efficient intermodal transportation auctions for
2015 B2B e-commerce logistics with transaction costs
Zhang et al. Introduced an optimization based transportation service trading
2016 model in B2B e-commerce logistics
Zhang et al. Studied about the optimal collaborative transportation service
2017 trading in B2B e-commerce logistics
He et al. Observed the impact of logistics resource sharing on B2C e-
2019 commerce companies and customers
Addressed a VRP simultaneously delivery and pickup from
Zhang et al.,
multiple depots with time windows in B2C e-commerce forward-
2020
reverse logistics system.
Considered a supply chain composed of two manufactures and
Ma et al., 2021 one supplier for procurement competition in the IoT-enabled
business-to-business e-commerce.
 Literature Review Contd.
Table 3: Key Literatures based on Circular Economy (CE), IoT and blockchain
Authors
Descriptions
& Years
Stolka, and Described the relationship between green logistics and circular
Kubicka, 2019 economy
Guarnieri et al., Described the implementation of first phase of packaging in
2020 reverse logistics sectoral agreement in Brazil, towards the CE
Yadav et al., Developed a framework to tackle the sustainable supply chain
2020 management challenges through CE and industry 4.0
Studied about the system effects of multi-level SC on CE
diffusion effects with the help of life cycle assessment tool to
Tseng et al., 2020
optimize the resource by minimize emission, waste, resource
input, and energy leakage
Torky and Exhibited a complete review on integrated IoT and blockchain
Hassanein, 2020 in evolving applications in precision agriculture.
Pal and Yasar, Presented an architecture based on blockchain technology for the
2020 applications of the internet of things (IoT) in SC network
 Research Motivation

 A sustainable forward-reverse logistics network along with the

development of circular economy (CE) concepts that captures the fresh
and returned products (which comes under three categories i.e., resell-
able, refurbish-able and recyclable) in the e-commerce platform

 A reverse-to-forward logistics network design with environmental

sustainability in e-commerce, which captures all difficulties associated
with closed-loop supply chain for the collection and delivery of used
mobile phones from user locations towards the CE
 Research Objectives

• To develop a sustainable multi-echelon forward-reverse logistics

network for delivery of fresh and pickup of returned electronics
products towards the circular economy (CE) in the E-commerce
platform. In reverse logistics, the returned products categorized into
resell-able, refurbish able and recyclable and then deliver to their
respective places
 Research Objectives Contd.

• To develop a reverse-to-forward logistics network design with environmental

sustainability in e-commerce, which captures all difficulties associated with
closed-loop supply chain for the pickup and delivery of used mobile phones
from user locations towards the CE. Network includes the problems related to
the used mobile phone collection, classification into direct resell-able,
refurbish-able, recyclable and disposable, handling, holding, transportation
with environmental effect, and remanufacturing
 Multi-Echelon Forward-Reverse Logistics for Multi-Product
delivery and pickup Operations in E-commerce towards the CE
Problem Description

Figure IV.1. Framework of forward and reverse logistics in e-commerce platform.

 Mathematical Model

Assumptions and Notations.pptx

Objective function
Total cost in forward logistics (FL)

Total cost in forward logistics (FL) = Cost of product + (transportation cost + carbon
emission taxation cost) + (handling cost) LDC+ (last-mile delivery cost + carbon emission
S→LDC

taxation cost) LDC→CL

 Mathematical Model Contd.
Total cost in reverse logistics (RL)

Total expected Revenue (TER)

 Mathematical Model Contd.
Subjected to constraints

Availability constraint

Storage capacity
constraint
 Mathematical Model Contd.
Subjected to constraints contd.

Demand
constraints

Ensure that the total quantity flow in forward logistics should be

equal to the sum total accepted and returned quantity
 Mathematical Model Contd.
Subjected to constraints contd.

These equations
compute the
number of vehicles
required for
delivery operations
 Mathematical Model Contd.
Subjected to constraints contd.
Make sure that the pickup at supplier node
only once,

Make sure that the pickup at LDC only once

Make sure that the pickup of returned product

at customer location only once
Make sure that the pickup of resellable product
at IC only once

Make sure that the pickup refurbishable

product at IC only once
Make sure that the pickup recyclable product
at IC only once
 Mathematical Model Contd.
Subjected to constraints contd.

The binary decision variable

constraints

Non-negative positive
integer constraints
 Results and discussion
Case study
• In this case scenario, we have considered 2 suppliers, 5 LDCs, 5 customers, 3
types of products, 5 inspection centers, 2 refurbishing center and 2 recycling
centers
• There are 925 number of variables and 2020 number of constraints
• The total revenue 9.50956 million US Dollars

Table IV.1: Number of vehicles required for the delivery and returned pickup of orders
 Results and discussion contd.
Case study contd.

Figure IV.2. Optimized routes for orders pickup and delivery in forward and reverse logistics
 Results and discussion contd.
Computational Experiments
Table IV.2: Computational experiments in different case scenarios
 Results and discussion contd.
Sensitivity Analysis
Table IV.3: Sensitivity analysis in two case scenarios
Development of Circularity and Sustainability in the Closed-Loop
Supply Chain for Product Recovery in C2B E-commerce
Problem Description

Figure V.1. Framework of reverse to forward logistics in e-commerce platform

 Mathematical Model
Assumptions and Notations.pptx
Total cost in reverse logistics (TCRL)

Total cost in forward logistics (TCFL)

 Mathematical Model Contd.
Objective function
Subjected to constraints

Availability
constraints
 Mathematical Model Contd.
Subjected to constraints

Demand constraints
 Mathematical Model Contd.
Subjected to constraints contd.

These equations compute the number of vehicles

required to perform the delivery operations.
 Mathematical Model Contd.
Subjected to constraints contd.
Make sure that the pickup of used products at
owner location only once,
Make sure that the pickup of resell-able products at
LPC only once
Make sure that the pickup of refurbish-able
products at LPC only once
Make sure that the pickup of recyclable products at
LPC only once
Make sure that the pickup disposable products at
LPC only once
Make sure that the pickup refurbished products at
RFC only once
Make sure that the pickup of recycled products at
RCC only once,
Make sure that the pickup of modified products at
SPW only once
Make sure that the pickup of modified products at
LDC only once
 Mathematical Model Contd.
Subjected to constraints contd.

Binary decision variables

Non-negative positive integer constraints

 Results and Discussion
Case study
In this, we have considered
5 used products owners, 5
local distribution centers, 2
supplier warehouses, 2
refurbishing centers, 2
recycling centers, 2
remanufacturing centers, 2
disposal centers, 5 local
distribution centers, and 5
refurbished product buyers
Figure V.2. Optimized routes for orders pickup and delivery in
reverse and forward logistics network
 Results and Discussion Contd.
Computational Experiments
Table V.1: Computational experiments in different case scenarios
 Results and Discussion Contd.
Sensitivity Analysis
Table V.2: Sensitivity analysis in two case scenarios
Data Driven Model
Machine Learning

Traditional Programming

Machine Learning
When Do We Use Machine Learning?

ML is used when:
Human expertise does not exist (navigating on Mars)
Humans can’t explain their expertise (speech recognition)
Models must be customized (personalized medicine)
Models are based on huge amounts of data (genomics)
A classic example of a task that requires machine learning: It is very
hard to say what makes a 2

From: Geoffrey Hinton

Some more examples of tasks that are best solved
by using a learning algorithm

• Recognizing patterns:
Facial identities or facial expressions
Handwritten or spoken words
Medical images
• Generating patterns:
Generating images or motion sequences
• Recognizing anomalies:
Unusual credit card transactions
Unusual patterns of sensor readings in a nuclear power plant
• Prediction:
Future stock prices or currency exchange rates
Sample Applications

Web search
Computational biology
Finance
E-commerce
Space exploration
Robotics
Information extraction
Social networks
Debugging software
[Your favorite area]
Deep Learning in the Headlines
Types of Learning

Supervised (inductive) learning

Given: training data + desired outputs (labels)

Unsupervised learning
Given: training data (without desired outputs)

Semi-supervised learning
Given: training data + a few desired outputs

Reinforcement learning
Rewards from sequence of actions
Supervised Classification. Example: Spam Detection

• Represent each message by features. (e.g., keywords, spelling, etc.)

Reasonable RULES: Predict SPAM if unknown AND (money OR pills)

Predict SPAM if 2money + 3pills –5 known > 0
Supervised Classification. Many other examples

Weather prediction

Medicine: diagnose a disease

 input: from symptoms, lab measurements, test results, DNA tests, …
 output: one of set of possible diseases, or “none of the above”
 examples: audiology, thyroid cancer, diabetes, …
 or: response to chemo drug X
 or: will patient be re-admitted soon?
 What is a Neural Network?

•Biologically motivated approach to

machine learning

Similarity with biological network

Fundamental processing elements of a neural network
is a neuron
1.Receives inputs from other source
2.Combines them in someway
3.Performs a generally nonlinear operation on the
result
4.Outputs the final result
Similarity with Biological Network

• Fundamental processing element of a

neural network is a neuron
• A human brain has 100 billion neurons
• An ant brain has 250,000 neurons
Synapses,
the basis of learning and memory
 Neural Network

• Neural Network is a set of connected

INPUT/OUTPUT UNITS, where each connection
has a WEIGHT associated with it.

• Neural Network learning is also called CONNECTIONIST

learning due to the connections between units.

• It is a case of SUPERVISED, INDUCTIVE or

CLASSIFICATION learning.
Training of Data-set on 150 instances
 Conclusion

• Developed an integrated sustainable framework for reverse to forward logistics

• This framework capture the complexities associated with pickup and delivery
related problems with categorization of returned products, reselling, refurbishing,
and recycling related concerns
• The objective is to minimize the overall logistics cost with carbon emission
taxation cost
• From the solution, the optimized transport quantity delivery, number of vehicles
and routes are found for each cases scenarios
After training the datasets on 150 instances, there is no use of mathematical model.
 Applications
• First work is applicable for furniture based B2B e-commerce platforms available
in India such as Urban Ladder, FabFurnish, PeperFry, StitchWood, Coustom
Furnish, Wood streets etc.
• Second work for electronics based B2B e-commerce platforms available in India
such as Alibaba, Amazon Businesses etc.
• Third work for agro-food based e-commerce available in India such as Agri-tech
startup Harvesting, AgroSpectrum, and ministry of agriculture etc.
• Fourth work for electronics based B2C e-commerce platforms available in India
such as Alibaba, Amazon, Flipkart, Myntra, Mesho etc.
• Fifth work for electronics based C2B e-commerce platforms available in India
such as Cashify, Budli, recycledevice etc.
Thank You