Last-mile delivery: Optimal locker location under multinomial logit choice model

Lin, Yun Hui; Wang, Yuan; He, Dongdong; Lee, Loo Hay

doi:10.1016/j.tre.2020.102059

Cited by 69 publications

(41 citation statements)

References 36 publications

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Section: Introductionmentioning

confidence: 93%

“…The paper's focus is the opposite of the focus of Lin et al [27]. While both papers optimize parcel locker networks, Lin et al [27] maximized the service level, while this paper minimizes cost. In addition, this paper disregards the location but considers the capacity, while Lin et al [27] did not consider the capacity but included the location.…”

Section: Introductionmentioning

confidence: 93%

“…While both papers optimize parcel locker networks, Lin et al [27] maximized the service level, while this paper minimizes cost. In addition, this paper disregards the location but considers the capacity, while Lin et al [27] did not consider the capacity but included the location. Lin et al [27] considered a homogeneous demand proportional to the number of residents, while this study uses real parcel delivery data over one year, including seasonal and daily changes.…”

Section: Introductionmentioning

confidence: 99%

“…In addition, this paper disregards the location but considers the capacity, while Lin et al [27] did not consider the capacity but included the location. Lin et al [27] considered a homogeneous demand proportional to the number of residents, while this study uses real parcel delivery data over one year, including seasonal and daily changes. Janjevic et al [28] considered real delivery data, but only for one example day and for changing demand levels, but not for each day of the year as in this study.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Combining Parcel Lockers with Staffed Collection and Delivery Points: An Optimization Case Study Using Real Parcel Delivery Data (London, UK)

Schnieder

Hinde

West

2021

Journal of Open Innovation: Technology, Market, and Complexity

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Delivering parcels to collection and delivery points (CDPs) is often seen as a better option compared with home delivery. However, if the demand is inhomogeneous, either the parcel locker utilization or the service level (i.e., the number of parcels that can be delivered) is low. Either situation would reduce the financial viability. This paper compares two options to increase the utilization, namely: (i) modular lockers (i.e., numbers of lockers adjusted periodically depending on demand) and (ii) combining parcel lockers with staffed CDPs. The latter has the advantage of a low investment cost of staffed CDPs and a low cost per parcel of parcel lockers. Secondly, the paper calculates the optimal number of lockers at a staffed CDP, assuming that all parcels are placed in the staffed CDP if the parcel locker is full. This method was applied to data collected by a parcel delivery company in London. The advantage of using real world data over one year is that it includes seasonal and daily changes in the parcel demand. The decision support method accounts for parcels not being picked up by customers on the delivery day, returned deliveries, and the net present value (NPV) of the investment. This paper shows that having enough lockers for 100% of all parcels compared with 80% doubles the number of required parcel lockers because of the inhomogeneity of the demand. In addition, combining fixed lockers with staffed CDPs offers greater financial benefits compared with modular lockers in this case study.

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Section: Introductionmentioning

confidence: 93%

Section: Introductionmentioning

confidence: 93%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Combining Parcel Lockers with Staffed Collection and Delivery Points: An Optimization Case Study Using Real Parcel Delivery Data (London, UK)

Schnieder

Hinde

West

2021

Journal of Open Innovation: Technology, Market, and Complexity

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“…Simulation is also applied in a model that utilises newspaper kiosks in the Valladolid city (Spain) as parcel lockers [18]. The problems of an optimal parcel locker location using mathematical methods are described here [19,20].…”

Section: Literature Reviewmentioning

confidence: 99%

The Growth of E-Commerce Due to COVID-19 and the Need for Urban Logistics Centers Using Electric Vehicles: Bratislava Case Study

et al. 2021

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Before the COVID-19 pandemic there had already been an increase in individual shipment transportation including inner-city areas. During the pandemic and implementation of adopted preventive measures, it has increased by more than 100% in some cities. This presents an unsustainable development, particularly in terms of urban environment. The above-mentioned development has accelerated the research related to optimal allocation of logistics centres considering the last-mile distribution. Unfortunately, the theoretical mathematical model that finds an optimal urban logistics centre location based on the matrix of distance, number, and weight of shipments is not applicable in most cities. Therefore, the following research methodology was chosen in accordance with the approved territorial plan. The authors considered those locations in Bratislava—the capital of Slovak Republic—which are designated, or suitable for building up of an urban logistics centre. These localities were afterwards evaluated in a real-world case study employing methods of mathematical programming (linear programming), the nearest neighbour method, and the Clarke-Wright method. The presented methodology can be applied not only when deciding on the appropriate location of the city logistics centre, but also at optimizing the vehicle routing problem. Taking into account the urban logistics sustainability and the e-commerce growth, it was analysed whether the suggested location of urban logistics centre is feasible to provision examined facilities using electric vehicles. The range of considered electric vehicles of N2 category present in the market tends to be at the limits of distribution routes length for the given case study. Therefore, the article also deals with the fast-charging possibilities of vehicles during handling operations and the use of hybrid freight vehicles in city logistics.

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Service center location problems with decision dependent utilities and a pandemic case study

Luo

Mehrotra

2023

Naval Research Logistics

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We study a service center location problem with ambiguous utility gains upon receiving service. The model is motivated by the problem of deciding medical clinic/service centers, possibly in rural communities, where residents need to visit the clinics to receive health services. A resident gains his utility based on travel distance, waiting time, and service features of the facility that depend on the clinic location. The elicited location‐dependent utilities are assumed to be ambiguously described by an expected value and variance constraint. We show that despite a non‐convex nonlinearity, given by a constraint specified by a maximum of two second‐order conic functions, the model admits a mixed 0‐1 second‐order cone (MISOCP) formulation. We study the non‐convex substructure of the problem, and present methods for developing its strengthened formulations by using valid tangent inequalities. Computational study shows the effectiveness of solving the strengthened formulations. Examples are used to illustrate the importance of including decision dependent ambiguity. An illustrative example to identify locations for Covid‐19 testing and vaccination is used to further illustrate the model and its properties.

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Last-mile delivery: Optimal locker location under multinomial logit choice model

Cited by 69 publications

References 36 publications

Combining Parcel Lockers with Staffed Collection and Delivery Points: An Optimization Case Study Using Real Parcel Delivery Data (London, UK)

Combining Parcel Lockers with Staffed Collection and Delivery Points: An Optimization Case Study Using Real Parcel Delivery Data (London, UK)

The Growth of E-Commerce Due to COVID-19 and the Need for Urban Logistics Centers Using Electric Vehicles: Bratislava Case Study

Service center location problems with decision dependent utilities and a pandemic case study

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