EURO 2024 Copenhagen
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1613. A Real-Life Order Allocation and Dispatching Problem in Megacities

Invited abstract in session MA-56: Last mile delivery modeling, stream Transportation.

Monday, 8:30-10:00
Room: S04 (building: 101)

Authors (first author is the speaker)

1. Muchammad Arya Zamal
Industrial Engineering, TU Eindhoven
2. Albert Schrotenboer
Department of Industrial Engineering and Innovation Sciences, Eindhoven University of Technology
3. Tom van Woensel
Technische Universiteit Eindhoven

Abstract

This study addresses the complexities of two-echelon distribution systems in modern city logistics, highlighting the challenges faced by megacities like Jakarta, Indonesia. In collaboration with an industry partner, our research explores a logistics platform designed for efficient same- and next-day deliveries between local shops and consumers. In this context, we introduce the stochastic and dynamic order allocation and dispatching problem (SDOA-DP) aimed at minimizing costs by optimizing order allocations to linehauls between two-echelon systems and dispatching strategies within them. This paper makes the following contribution: advancing corridor-based logistics by explicitly integrating efficient linehaul planning with first and last-mile routing, employing a cost-function approximation within a two-stage stochastic programming formulation for dynamic order assignment, and leveraging a parameterized Adaptive Large Neighborhood Search algorithm for routing. Finally, our model was implemented using real-life data, demonstrating the approach's effectiveness in reducing logistics costs.

Keywords

Status: accepted


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