United States Department of Transportation
i
Effect of Connected and Autonomous Vehicles on Supply Chain Performance
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2022-08-01
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[PDF-1.53 MB]
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Edition:Final Report
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Abstract:Connected and autonomous vehicles (CAVs) are an emerging technology that has great potential for increasing road capacity and reducing traffic incidents, congestion, fuel/energy consumption as well as emission, all of which may support safer and more reliable and efficient (and potentially sustainable) transportation systems. Given that transportation network plays a key role in a supply chain system in terms of its performance and cost, CAVs will ultimately change many aspects of a supply chain system. While the effects of CAVs on transportation network have been extensively studied through simulations or empirical data, only a limited number of studies have been conducted to investigate potential opportunities (or challenges) that may arise from the introduction/adoption of CAVs in the context of supply chain design, operation and performance. Moreover, their quantitative effect on a supply chain system has yet to be explored in any depth. This project proposes a simulation framework that quantitatively assesses the direct and indirect effects of CAVs on a supply chain system by varying the levels of CAV market penetration and driverless truck adoption. To quantify CAV effects on transportation network, this project first collects secondary data and adopts simulation parameters and equations from existing literature. The results from transportation analysis are then incorporated into supply chain analysis to evaluate how CAVs would change supply chain performance measured by total travel time, greenhouse gas emissions, and supply chain cost. As the performance of supply chain systems involving perishable or semi-perishable products is highly sensitive to CAV market penetration rate and driverless truck adoption rate mainly because of reduced travel time, this project uses fresh potato supply chain systems as an illustrative example. The case study results indicate that CAVs can greatly improve supply chain performance directly and indirectly by decreasing total travel time and supply chain costs, whereas emissions are reduced primarily through the adoption of driverless trucks in the supply chain system. The effect of CAVs on supply chain performance becomes even greater when commodities travel longer distances. Moreover, with the adoption of connected and autonomous vehicles, the geographic distribution of the supply chain system can be extended. This project will allow supply chain managers (and grocery delivery companies) to better understand how supply chain design and operation could be transformed and reoptimized in response to the introduction of CAV technologies. The research outcomes would help them better utilize the opportunities and address possible challenges that may arise as a result of CAVs.
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