A Two-Echelon Routing Model for Sustainable Last-Mile Delivery with an Intermediate Facility: A Case Study of Pharmaceutical Distribution in Rome

Abstract

This paper introduces a two-echelon optimization model for the integrated routing of an electric vehicle (EV) and a traditional internal combustion engine vehicle (ICEV) in an urban environment. The scientific context of this study is sustainable urban logistics. The case study focuses on the distribution of pharmaceuticals in the metropolitan area of Rome. Distributing pharmaceuticals in large cities presents significant challenges, including heavy traffic congestion, the need for strict temperature control, and the maintenance of the integrity and timely delivery of sensitive medications. Furthermore, the complexity of urban logistics and adherence to regulatory requirements introduce additional layers of difficulty. Therefore, the implementation of fast and sustainable distribution mechanisms is crucial in this context. Specifically, the model seeks to minimize both total CO2 emissions and transportation costs while optimizing the use of an EV and an ICEV, all while ensuring that service level requirements are met. Computational results demonstrate the effectiveness of the proposed method in improving the sustainability of pharmaceutical distribution.