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Design and modeling of a crowdsource-enabled system for urban parcel relay and delivery

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  • Kafle, Nabin
  • Zou, Bo
  • Lin, Jane

Abstract

This paper proposes a crowdsource-enabled system for urban parcel relay and delivery. We consider cyclists and pedestrians as crowdsources who are close to customers and interested in relaying parcels with a truck carrier and undertaking jobs for the last-leg parcel delivery and the first-leg parcel pickup. The crowdsources express their interests in doing so by submitting bids to the truck carrier. The truck carrier then selects bids and coordinates crowdsources’ last-leg delivery (first-leg pickup) with its truck operations. The truck carrier's problem is formulated as a mixed integer non-linear program which simultaneously i) selects crowdsources to complete the last-leg delivery (first-leg pickup) between customers and selected points for crowdsource-truck relay; and ii) determines the relay points and truck routes and schedule. To solve the truck carrier problem, we first decompose the problem into a winner determination problem and a simultaneous pickup and delivery problem with soft time windows, and propose a Tabu Search based algorithm to iteratively solve the two subproblems. Numerical results show that this solution approach is able to yield close-to-optimum solutions with much less time than using off-the-shelf solvers. By adopting this new system, truck vehicle miles traveled (VMT) and total cost can be reduced compared to pure-truck delivery. The advantage of the system over pure-truck delivery is sensitive to factors such as penalty for servicing outside customers’ desired time windows, truck unit operating cost, time value of crowdsources, and the crowdsource mode.

Suggested Citation

  • Kafle, Nabin & Zou, Bo & Lin, Jane, 2017. "Design and modeling of a crowdsource-enabled system for urban parcel relay and delivery," Transportation Research Part B: Methodological, Elsevier, vol. 99(C), pages 62-82.
    • Handle: RePEc:eee:transb:v:99:y:2017:i:c:p:62-82
    DOI: 10.1016/j.trb.2016.12.022
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