EURO 2024 Copenhagen
Abstract Submission

EURO-Online login

3468. Extending the Parcel Lockers' Solution to the Logistics Last Mile Problem

Invited abstract in session WA-64: Last-Mile Delivery, stream VeRoLog - Vehicle Routing and Logistics.

Wednesday, 8:30-10:00
Room: S16 (building: 101)

Authors (first author is the speaker)

1. Boaz Golany
Data & Decision Sciences, Technion - Israel Institute of Technology
2. Yael Deutsch
Bar Ilan

Abstract

We extend the model of designing a parcel lockers network as a solution to the logistics last mile problem, by choosing how many parcel lockers facilities to open, where to locate them, how many lockers to install in each facility, how to serve demand that exceeds the facilities’ finite capacities, and what discounts to offer to customers to motivate them to prefer the lockers’ option over the more convenient option of receiving the parcel at their doorstep. The objective is to maximize the total profit, consisting of the revenue from customers who use the parcel lockers solution, minus the facilities’ fixed and operational setup costs and the different discounts offered to customers, depending on their travel distance and on their mode of pick-ups (on time, with minor or major delays, or by-passing the lockers and picking up directly at designated counters inside stores that were contracted for this task). The problem is expressed as a mixed integer linear program. We show that the model is tractable and can easily be solved by appropriate solvers available today. We present a few numerical examples to show how the model can be used in practice and demonstrate its sensitivity to additional constraints that might be imposed in certain circumstances.

Keywords

Status: accepted

Back to the list of papers