Integrating collection-and-delivery points in the strategic design of urban last-mile e-commerce distribution networks

Janjevic, Milena; Winkenbach, Matthias; Merchán, Daniel

doi:10.1016/j.tre.2019.09.001

Cited by 101 publications

(52 citation statements)

References 48 publications

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“…The VRPDO extends the GVRPTW by two important real-world aspects: First, customers can individually prioritize their different delivery options beforehand, and the overall customer satisfaction level is taken into account by a given service level that must be achieved. Second, some delivery options may share a common location, e.g., pick-up points or postal boxes (Janjevic et al 2019). The capacity of these locations is limited, in particular in densely populated areas of cities where space is scarce and expensive.…”

Section: Introductionmentioning

confidence: 99%

The last-mile vehicle routing problem with delivery options

2021

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The ongoing rise in e-commerce comes along with an increasing number of first-time delivery failures due to the absence of the customer at the delivery location. Failed deliveries result in rework which in turn has a large impact on the carriers’ delivery cost. In the classical vehicle routing problem (VRP) with time windows, each customer request has only one location and one time window describing where and when shipments need to be delivered. In contrast, we introduce and analyze the vehicle routing problem with delivery options (VRPDO), in which some requests can be shipped to alternative locations with possibly different time windows. Furthermore, customers may prefer some delivery options. The carrier must then select, for each request, one delivery option such that the carriers’ overall cost is minimized and a given service level regarding customer preferences is achieved. Moreover, when delivery options share a common location, e.g., a locker, capacities must be respected when assigning shipments. To solve the VRPDO exactly, we present a new branch-price-and-cut algorithm. The associated pricing subproblem is a shortest-path problem with resource constraints that we solve with a bidirectional labeling algorithm on an auxiliary network. We focus on the comparison of two alternative modeling approaches for the auxiliary network and present optimal solutions for instances with up to 100 delivery options. Moreover, we provide 17 new optimal solutions for the benchmark set for the VRP with roaming delivery locations.

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Section: Introductionmentioning

confidence: 99%

The last-mile vehicle routing problem with delivery options

2021

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“…Current increase in last mile delivery is the impact of an increase of the home delivery service in a region due to the development of e-commerce. Therefore, last mile delivery has an important role in the sustainability of ecommerce 10,11,25) . The implementation of good delivery using the home delivery service results in several similar problems throughout the world.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Problems include the significant order fragmentation where current users of shipping services not only originate from big cities, but from more rural areas too. As a result, the delivery location is also spread out and regulations related to urban goods transportation are still inefficient 9,10,24) . Operational problems related to the number of fleets are limited, resulting in delays in delivery 9,15,21) .…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Characteristics and Efficiency of Smart Locker System (Case Study: Jabodetabek)

Refaningati

Nahry²,

Tangkudung³

et al. 2020

Evergreen

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Last mile delivery is the last trip of an item before it arrives at the final destination. The current increase of last mile delivery is the impact of increasing home delivery services in areas that see a growing development of e-commerce. There are several issues in the operational process, including the high number of trips taken from parcel delivery service. One of the innovations used to solve these issues is the smart locker system. The objective of this research is to analyze the characteristics and efficiency of the smart locker system that has been running in Jabodetabek to reduce the trips taken for home delivery service. Data analysis was performed using the travel diary data of a single smart locker operator. Results showed that the use of smart locker is not without faults and causes the performance of each transit hub (as a part of a trip chain of smart lockers) to significantly differ. One issue includes the variable of waiting time either at the pickup or at the delivery of shipments. Another issue is that the coverage area for each locker is not the same, thus affecting the performance of each transit hub. In terms of delivery trip length, the use of the smart locker is 30.65% more efficient when compared to parcel delivery service. In order to deliver 222 items, the total trip length for parcel delivery is 717.8 km, while using the smart locker requires a total trip length of 497.83 km.

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“…The algorithm used was aimed at minimizing the sum of the fixed costs and transport costs between each of the demand nodes and UCC locations. Other studies [57][58][59][60] determined the optimal configurations of UCCs as a part of vehicle routing problem where optimal vehicle fleet and delivery routes were identified sequentially using the optimal locations of UCCs, with a view to minimizing service providers' costs.…”

Section: Facility Location Problems (Flps) and Application In Last-mimentioning

confidence: 99%

Establishing Collection and Delivery Points to Encourage the Use of Active Transport: A Case Study in New Zealand Using a Consumer-Centric Approach

2019

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The current and projected trends of growth in online shopping might change the activity and travel patterns in Christchurch, one of the largest cities in New Zealand. Online shopping might reduce consumers’ shopping trips, but it has substantially increased courier companies’ trips to deliver parcels to the end-consumers because a considerable proportion of parcels are often required to be redelivered due to consumers not being at home during the first delivery attempt. This also adds to the operational cost of courier companies and adverse traffic impacts. To mitigate these issues, collection-and-delivery points (CDPs) have recently been introduced in New Zealand on a trial basis. This study aims to identify the optimal density and locations for establishing CDPs in Christchurch using a modified p-median location-allocation (LA) model. A consumer-centric approach to locating CDPs has been adopted by considering the socio-demographic characteristics of Christchurch’s residents and the distances to/from CDPs. Non-traditional CDP locations (e.g., supermarkets and dairies) were considered as potential candidate facilities and were found to be more suitable as CDPs than traditional post shops. Based on consumers’ shopping pattern, supermarkets appeared to be the most frequently visited and preferred type of facility to be used as CDPs. However, the results of the LA analyses show that dairies are the most accessible locations, and CDPs at dairies located within two kilometres will encourage consumers to walk and cycle to receive their parcels from CDPs. The results suggest the optimal location configuration for each type of facility considered, based on their spatial distribution in the city.

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Integrating collection-and-delivery points in the strategic design of urban last-mile e-commerce distribution networks

Cited by 101 publications

References 48 publications

The last-mile vehicle routing problem with delivery options

The last-mile vehicle routing problem with delivery options

Analysis of Characteristics and Efficiency of Smart Locker System (Case Study: Jabodetabek)

Establishing Collection and Delivery Points to Encourage the Use of Active Transport: A Case Study in New Zealand Using a Consumer-Centric Approach

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