Urban Freight Regulations: How much they cost the consumers?

Abstract

The paper discusses a multi-criteria decision-making model to identify costs due to time-windows based vehicle entry restrictions as percentage of product retail price. The study was done for two Indian supply chains in carbonated beverage, and fashion and clothing product categories from retailer's, supplier's and 3PL logistics player's perspective. Profit differential for scenarios when urban freight regulations were in place and when they were not in place were analysed for varied service levels of back orders and time-windows based entry restrictions. We found that for various decision-making and cost bearing structures, profit differentials varied from -6.0% to 7.5% of the product retai..