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A new model for Last-Mile Delivery and Satellite Depots management: The impact of the on-demand economy

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  • Perboli, Guido
  • Brotcorne, Luce
  • Bruni, Maria Elena
  • Rosano, Mariangela

Abstract

Two-tier city logistics systems are playing a very important role nowadays in the management of urban freight activities. Although several city authorities have promoted different measures to foster the implementation of small urban consolidation centers in a two-tier system, only a few authors have addressed the joint problem of operating these facilities and providing services to customers. We show how the problem can be modeled as a new variant of the bin packing, for which we provide a mixed integer programming formulation and two heuristics that are shown to be quite effective in solving efficiently and to near optimality the problem. The application of our approach on real data from the city of Turin puts into highlight the superiority of the consolidation approach, including the bundle of goods from different providers, stockholding and other value-added logistics services, over the classical single-tier approach. In addition, the paper provides a thorough analysis of some emerging aspects of the on-demand economy, as the consideration of customers’ preferences and the integration of multiple delivery options. The managerial insights coming from this work will be part of the new Logistics and Mobility Plan to be activated in 2022 in the Piedmont region.

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  • Perboli, Guido & Brotcorne, Luce & Bruni, Maria Elena & Rosano, Mariangela, 2021. "A new model for Last-Mile Delivery and Satellite Depots management: The impact of the on-demand economy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:transe:v:145:y:2021:i:c:s1366554520308279
    DOI: 10.1016/j.tre.2020.102184
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    1. Faugère, Louis & Klibi, Walid & White, Chelsea & Montreuil, Benoit, 2022. "Dynamic pooled capacity deployment for urban parcel logistics," European Journal of Operational Research, Elsevier, vol. 303(2), pages 650-667.
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    3. Leonardo N. Rosenberg & Noemie Balouka & Yale T. Herer & Eglantina Dani & Paco Gasparin & Kerstin Dobers & David Rüdiger & Pete Pättiniemi & Peter Portheine & Sonja van Uden, 2021. "Introducing the Shared Micro-Depot Network for Last-Mile Logistics," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
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    5. Elpida Xenou & Michael Madas & Georgia Ayfandopoulou, 2022. "Developing a Smart City Logistics Assessment Framework (SCLAF): A Conceptual Tool for Identifying the Level of Smartness of a City Logistics System," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    6. Yu, Jianjun & Fang, Yanli & Zhong, Yuanguang & Zhang, Xiong & Zhang, Ruijie, 2022. "Pricing and quality strategies for an on-demand housekeeping platform with customer-intensive services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    7. Zhang, Wenwei & Xu, Min & Wang, Shuaian, 2023. "Joint location and pricing optimization of self-service in urban logistics considering customers’ choice behavior," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    8. Wang, Li & Xu, Min & Qin, Hu, 2023. "Joint optimization of parcel allocation and crowd routing for crowdsourced last-mile delivery," Transportation Research Part B: Methodological, Elsevier, vol. 171(C), pages 111-135.
    9. Beckers, Joris & Cardenas, Ivan & Sanchez-Diaz, Ivan, 2022. "Managing household freight: The impact of online shopping on residential freight trips," Transport Policy, Elsevier, vol. 125(C), pages 299-311.
    10. 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).
    11. Andrii Galkin & Tibor Schlosser & Ivan Cardenas & Dominika Hodakova & Silvia Capayova, 2021. "Freight Demand and Supply Assessment for Implementation of Crowdsourcing Technology: A Case Study in Bratislava, Slovakia," Sustainability, MDPI, vol. 13(7), pages 1-22, March.
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    14. Grazyna Chaberek, 2021. "The Possibility of Reducing Individual Motorised Traffic through the Location of Collection Points Using the Example of Gdańsk, Poland," Sustainability, MDPI, vol. 13(19), pages 1-12, September.

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