IDEAS home Printed from https://ideas.repec.org/p/cdl/itsdav/qt5t76x0kh.html
   My bibliography  Save this paper

Coping with the Rise of E-commerce Generated Home Deliveries through Innovative Last-mile Technologies and Strategies

Author

Listed:
  • Jaller, Miguel
  • Pahwa, Anmol

Abstract

E-commerce can potentially make urban goods flow economically viable, environmentally efficient, and socially equitable. However, as e-retailers compete with increasingly consumer-focused services, urban freight witnesses a significant increase in associated distribution costs and negative externalities, particularly affecting those living close to logistics clusters. Hence, to remain competitive, e-retailers deploy alternate last-mile distribution strategies. These alternate strategies, such as those that include the use of electric delivery trucks for last-mile operations, a fleet of crowdsourced drivers for last-mile delivery, consolidation facilities coupled with light-duty delivery vehicles for a multi-echelon distribution, or collection-points for customer pickup, can restore sustainable urban goods flow. Thus, in this study, the authors investigate the opportunities and challenges associated with alternate last-mile distribution strategies for an e-retailer offering expedited service with rush delivery within strict timeframes. To this end, the authors formulate a last-mile network design (LMND) problem as a dynamic-stochastic two-echelon capacitated location routing problem with time-windows (DS-2E-C-LRP-TW) addressed with an adaptive large neighborhood search (ALNS) metaheuristic. View the NCST Project Webpage

Suggested Citation

  • Jaller, Miguel & Pahwa, Anmol, 2023. "Coping with the Rise of E-commerce Generated Home Deliveries through Innovative Last-mile Technologies and Strategies," Institute of Transportation Studies, Working Paper Series qt5t76x0kh, Institute of Transportation Studies, UC Davis.
    • Handle: RePEc:cdl:itsdav:qt5t76x0kh
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/5t76x0kh.pdf;origin=repeccitec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Estrada, Miquel & Roca-Riu, Mireia, 2017. "Stakeholder’s profitability of carrier-led consolidation strategies in urban goods distribution," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 165-188.
    2. Burke, Andrew PhD & Miller, Marshall PhD, 2020. "Zero-Emission Medium- and Heavy-duty Truck Technology, Markets, and Policy Assessments for California," Institute of Transportation Studies, Working Paper Series qt7n68r0q8, Institute of Transportation Studies, UC Davis.
    3. Pahwa, Anmol & Jaller, Miguel, 2022. "A cost-based comparative analysis of different last-mile strategies for e-commerce delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    4. Nadizadeh, Ali & Hosseini Nasab, Hasan, 2014. "Solving the dynamic capacitated location-routing problem with fuzzy demands by hybrid heuristic algorithm," European Journal of Operational Research, Elsevier, vol. 238(2), pages 458-470.
    5. Albareda-Sambola, Maria & Fernández, Elena & Nickel, Stefan, 2012. "Multiperiod Location-Routing with Decoupled Time Scales," European Journal of Operational Research, Elsevier, vol. 217(2), pages 248-258.
    6. Prodhon, Caroline, 2011. "A hybrid evolutionary algorithm for the periodic location-routing problem," European Journal of Operational Research, Elsevier, vol. 210(2), pages 204-212, April.
    7. Figliozzi, Miguel Andres, 2007. "Analysis of the efficiency of urban commercial vehicle tours: Data collection, methodology, and policy implications," Transportation Research Part B: Methodological, Elsevier, vol. 41(9), pages 1014-1032, November.
    8. Çağrı Koç, 2019. "Analysis of vehicle emissions in location-routing problem," Flexible Services and Manufacturing Journal, Springer, vol. 31(1), pages 1-33, March.
    9. Govindan, K. & Jafarian, A. & Khodaverdi, R. & Devika, K., 2014. "Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food," International Journal of Production Economics, Elsevier, vol. 152(C), pages 9-28.
    10. Marten, Alex L. & Newbold, Stephen C., 2012. "Estimating the social cost of non-CO2 GHG emissions: Methane and nitrous oxide," Energy Policy, Elsevier, vol. 51(C), pages 957-972.
    11. Drexl, Michael & Schneider, Michael, 2015. "A survey of variants and extensions of the location-routing problem," European Journal of Operational Research, Elsevier, vol. 241(2), pages 283-308.
    12. Maximilian Schiffer & Grit Walther, 2018. "An Adaptive Large Neighborhood Search for the Location-routing Problem with Intra-route Facilities," Transportation Science, INFORMS, vol. 52(2), pages 331-352, March.
    13. N Herazo-Padilla & J R Montoya-Torres & S Nieto Isaza & J Alvarado-Valencia, 2015. "Simulation-optimization approach for the stochastic location-routing problem," Journal of Simulation, Taylor & Francis Journals, vol. 9(4), pages 296-311, November.
    14. Yingpeng Hu & Kaixi Zhang & Jing Yang & Yanghui Wu, 2018. "Application of Hierarchical Facility Location-Routing Problem with Optimization of an Underground Logistic System: A Case Study in China," Mathematical Problems in Engineering, Hindawi, vol. 2018, pages 1-10, September.
    15. Shirley (Rong) Li & Burcu B Keskin, 2014. "Bi-criteria dynamic location-routing problem for patrol coverage," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 65(11), pages 1711-1725, November.
    16. Rabbani, M. & Heidari, R. & Yazdanparast, R., 2019. "A stochastic multi-period industrial hazardous waste location-routing problem: Integrating NSGA-II and Monte Carlo simulation," European Journal of Operational Research, Elsevier, vol. 272(3), pages 945-961.
    17. Walid Klibi & Francis Lasalle & Alain Martel & Soumia Ichoua, 2010. "The Stochastic Multiperiod Location Transportation Problem," Transportation Science, INFORMS, vol. 44(2), pages 221-237, May.
    18. Ting, Ching-Jung & Chen, Chia-Ho, 2013. "A multiple ant colony optimization algorithm for the capacitated location routing problem," International Journal of Production Economics, Elsevier, vol. 141(1), pages 34-44.
    19. Mamnoon Jamil & Rajan Batta & David M. Malon, 1994. "The Traveling Repairperson Home Base Location Problem," Transportation Science, INFORMS, vol. 28(2), pages 150-161, May.
    20. Isa, Selma Setsumi & Lima, Orlando Fontes & Vidal Vieira, José Geraldo, 2021. "Urban consolidation centers: Impact analysis by stakeholder," Research in Transportation Economics, Elsevier, vol. 90(C).
    21. Stefan Ropke & David Pisinger, 2006. "An Adaptive Large Neighborhood Search Heuristic for the Pickup and Delivery Problem with Time Windows," Transportation Science, INFORMS, vol. 40(4), pages 455-472, November.
    22. Aksen, Deniz & Altinkemer, Kemal, 2008. "A location-routing problem for the conversion to the "click-and-mortar" retailing: The static case," European Journal of Operational Research, Elsevier, vol. 186(2), pages 554-575, April.
    23. Parisa Dolati Neghabadi & Karine Evrard Samuel & Marie-Laure Espinouse, 2019. "Systematic literature review on city logistics: overview, classification and analysis," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 865-887, February.
    24. Barreto, Sergio & Ferreira, Carlos & Paixao, Jose & Santos, Beatriz Sousa, 2007. "Using clustering analysis in a capacitated location-routing problem," European Journal of Operational Research, Elsevier, vol. 179(3), pages 968-977, June.
    25. Pourrahmani, Elham & Jaller, Miguel, 2021. "Crowdshipping in last mile deliveries: Operational challenges and research opportunities," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    26. Patricia Mokhtarian, 2004. "A conceptual analysis of the transportation impacts of B2C e-commerce," Transportation, Springer, vol. 31(3), pages 257-284, August.
    27. Veenstra, Marjolein & Roodbergen, Kees Jan & Coelho, Leandro C. & Zhu, Stuart X., 2018. "A simultaneous facility location and vehicle routing problem arising in health care logistics in the Netherlands," European Journal of Operational Research, Elsevier, vol. 268(2), pages 703-715.
    28. Ahmadi-Javid, Amir & Seddighi, Amir Hossein, 2013. "A location-routing problem with disruption risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 63-82.
    29. Lemardelé, Clément & Estrada, Miquel & Pagès, Laia & Bachofner, Mónika, 2021. "Potentialities of drones and ground autonomous delivery devices for last-mile logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    30. Lin, C.K.Y. & Kwok, R.C.W., 2006. "Multi-objective metaheuristics for a location-routing problem with multiple use of vehicles on real data and simulated data," European Journal of Operational Research, Elsevier, vol. 175(3), pages 1833-1849, December.
    31. Vera Hemmelmayr & Karen Smilowitz & Luis de la Torre, 2017. "A periodic location routing problem for collaborative recycling," IISE Transactions, Taylor & Francis Journals, vol. 49(4), pages 414-428, April.
    32. Parisa Dolati Neghabadi & Karine Evrard Samuel & Marie-Laure Espinouse, 2019. "Systematic literature review on city logistics: overview, classification and analysis," Post-Print hal-01983716, HAL.
    33. Ji Ung Sun, 2015. "An Endosymbiotic Evolutionary Algorithm for the Hub Location-Routing Problem," Mathematical Problems in Engineering, Hindawi, vol. 2015, pages 1-11, July.
    34. Prodhon, Caroline & Prins, Christian, 2014. "A survey of recent research on location-routing problems," European Journal of Operational Research, Elsevier, vol. 238(1), pages 1-17.
    35. Gao, Shangce & Wang, Yirui & Cheng, Jiujun & Inazumi, Yasuhiro & Tang, Zheng, 2016. "Ant colony optimization with clustering for solving the dynamic location routing problem," Applied Mathematics and Computation, Elsevier, vol. 285(C), pages 149-173.
    36. Hanne Siikavirta & Mikko Punakivi & Mikko Kärkkäinen & Lassi Linnanen, 2002. "Effects of E‐Commerce on Greenhouse Gas Emissions: A Case Study of Grocery Home Delivery in Finland," Journal of Industrial Ecology, Yale University, vol. 6(2), pages 83-97, April.
    37. Renan Tunalioglu & Cagri Koc & Tolga Bektas, 2016. "A multiperiod location-routing problem arising in the collection of Olive Oil Mill Wastewater," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(7), pages 1012-1024, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Drexl, Michael & Schneider, Michael, 2015. "A survey of variants and extensions of the location-routing problem," European Journal of Operational Research, Elsevier, vol. 241(2), pages 283-308.
    2. Prodhon, Caroline & Prins, Christian, 2014. "A survey of recent research on location-routing problems," European Journal of Operational Research, Elsevier, vol. 238(1), pages 1-17.
    3. Sahar Validi & Arijit Bhattacharya & P. J. Byrne, 2020. "Sustainable distribution system design: a two-phase DoE-guided meta-heuristic solution approach for a three-echelon bi-objective AHP-integrated location-routing model," Annals of Operations Research, Springer, vol. 290(1), pages 191-222, July.
    4. Pahwa, Anmol & Jaller, Miguel, 2022. "A cost-based comparative analysis of different last-mile strategies for e-commerce delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    5. Zhang, Ying & Qi, Mingyao & Lin, Wei-Hua & Miao, Lixin, 2015. "A metaheuristic approach to the reliable location routing problem under disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 90-110.
    6. Gläser, Sina, 2022. "A waste collection problem with service type option," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1216-1230.
    7. Moshref-Javadi, Mohammad & Lee, Seokcheon, 2016. "The Latency Location-Routing Problem," European Journal of Operational Research, Elsevier, vol. 255(2), pages 604-619.
    8. Pourya Pourhejazy & Oh Kyoung Kwon, 2016. "The New Generation of Operations Research Methods in Supply Chain Optimization: A Review," Sustainability, MDPI, vol. 8(10), pages 1-23, October.
    9. Bagheri Hosseini, Mozhde & Dehghanian, Farzad & Salari, Majid, 2019. "Selective capacitated location-routing problem with incentive-dependent returns in designing used products collection network," European Journal of Operational Research, Elsevier, vol. 272(2), pages 655-673.
    10. Lin Zhou & Xu Wang & Lin Ni & Yun Lin, 2016. "Location-Routing Problem with Simultaneous Home Delivery and Customer’s Pickup for City Distribution of Online Shopping Purchases," Sustainability, MDPI, vol. 8(8), pages 1-20, August.
    11. Nadizadeh, Ali & Hosseini Nasab, Hasan, 2014. "Solving the dynamic capacitated location-routing problem with fuzzy demands by hybrid heuristic algorithm," European Journal of Operational Research, Elsevier, vol. 238(2), pages 458-470.
    12. Yanwei Zhao & Longlong Leng & Chunmiao Zhang, 2021. "A novel framework of hyper-heuristic approach and its application in location-routing problem with simultaneous pickup and delivery," Operational Research, Springer, vol. 21(2), pages 1299-1332, June.
    13. Zhuo Sun & Ni Yan & Yining Sun & Haobin Li, 2019. "Location-Routing Optimization with Split Demand for Customer Self-Pickup via Data Analysis and Heuristics Search," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(06), pages 1-24, December.
    14. Hemmelmayr, Vera C., 2015. "Sequential and parallel large neighborhood search algorithms for the periodic location routing problem," European Journal of Operational Research, Elsevier, vol. 243(1), pages 52-60.
    15. Alvarez, Jose A. Lopez & Buijs, Paul & Deluster, Rogier & Coelho, Leandro C. & Ursavas, Evrim, 2020. "Strategic and operational decision-making in expanding supply chains for LNG as a fuel," Omega, Elsevier, vol. 97(C).
    16. Bergmann, Felix M. & Wagner, Stephan M. & Winkenbach, Matthias, 2020. "Integrating first-mile pickup and last-mile delivery on shared vehicle routes for efficient urban e-commerce distribution," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 26-62.
    17. Andrés Martínez-Reyes & Carlos L. Quintero-Araújo & Elyn L. Solano-Charris, 2021. "Supplying Personal Protective Equipment to Intensive Care Units during the COVID-19 Outbreak in Colombia. A Simheuristic Approach Based on the Location-Routing Problem," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    18. Gläser, Sina & Stücken, Mareike, 2021. "Introduction of an underground waste container system–model and solution approaches," European Journal of Operational Research, Elsevier, vol. 295(2), pages 675-689.
    19. Janjevic, Milena & Merchán, Daniel & Winkenbach, Matthias, 2021. "Designing multi-tier, multi-service-level, and multi-modal last-mile distribution networks for omni-channel operations," European Journal of Operational Research, Elsevier, vol. 294(3), pages 1059-1077.
    20. Ben Mohamed, Imen & Klibi, Walid & Sadykov, Ruslan & Şen, Halil & Vanderbeck, François, 2023. "The two-echelon stochastic multi-period capacitated location-routing problem," European Journal of Operational Research, Elsevier, vol. 306(2), pages 645-667.

    More about this item

    Keywords

    Business; Engineering; Alternatives analysis; Delivery service; Electronic commerce; First mile and last mile; Routes; Urban goods movement;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdl:itsdav:qt5t76x0kh. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lisa Schiff (email available below). General contact details of provider: https://edirc.repec.org/data/itucdus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.