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1487. A bilevel two-echelon multi-commodity routing problem to facilitate greener last-mile logistics
Invited abstract in session MC-29: Vehicle routing I, stream Combinatorial Optimization.
Monday, 12:30-14:00Room: 157 (building: 208)
Authors (first author is the speaker)
| 1. | Ade Fajemisin
|
| Digitalization Academy, SKEMA Business School | |
| 2. | David Rey
|
| School of Civil and Environmental Engineering, UNSW |
Abstract
An increasing number of cities are incentivising the consolidation of deliveries to micro-hubs outside Low-Emission Zones (LEZs), and the use of lower footprint delivery vehicles such as cargo bikes and electric delivery vehicles inside the LEZs. We therefore present a single leader, multiple follower bilevel two-echelon multi-commodity routing problem to facilitate greener last-mile logistics. The leader represents a platform, whose goal is to minimize both emissions and the number of delivery vehicles operating in an LEZ. The leader is also responsible for allocating parcels to micro-hubs, as well as allocating parcels to last-mile Delivery Service Providers (DSPs). On the other hand, the followers seek to minimize routing costs and maximize client satisfaction. There are two types of followers: first-mile followers who deliver parcels to micro-hubs, and last-mile followers who pick up the parcels from the micro-hubs and deliver to their final destinations. Each first-mile follower solves a Vehicle Routing Problem (VRP) with time windows, while each last-mile follower solves a pickup and delivery, time-dependent VRP with time windows. We also develop a cutting plane algorithm to solve our bilevel problem and evaluate the effect of our approach on several problem instances using real-world data.
Keywords
- Vehicle Routing
- Logistics
- Game Theory
Status: accepted
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