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Pricing of parcel locker service in urban logistics by a TSP model of last-mile delivery

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  • Yu, Yaoqin
  • Lian, Feng
  • Yang, Zhongzhen

Abstract

Parcel lockers offer a service for last-mile delivery in urban logistics. To price this service, we identified its values to consignees not at receiving sites and to couriers when delivering parcels to lockers instead of consignees. A travel salesman problem (TSP) model is built to analyze the cost change of last-mile delivery corresponding to the availability of consignees at designated receiving sites. Based on cost evaluation, fees that consignees and couriers should pay respectively are determined based on beneficiary-pay principle. The results of our empirical analyses show that the value of the locker service varies with the terms of express delivery and the availability uncertainty of whether consignees are present at the designated receiving sites, which provides a fundamental pricing basis for locker service providers to charge the couriers or the consignees.

Suggested Citation

  • Yu, Yaoqin & Lian, Feng & Yang, Zhongzhen, 2021. "Pricing of parcel locker service in urban logistics by a TSP model of last-mile delivery," Transport Policy, Elsevier, vol. 114(C), pages 206-214.
    • Handle: RePEc:eee:trapol:v:114:y:2021:i:c:p:206-214
    DOI: 10.1016/j.tranpol.2021.10.002
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    References listed on IDEAS

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    1. Akeb, Hakim & Moncef, Btissam & Durand, Bruno, 2018. "Building a collaborative solution in dense urban city settings to enhance parcel delivery: An effective crowd model in Paris," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 223-233.
    2. Dost, Florian & Geiger, Ingmar, 2017. "Value-based pricing in competitive situations with the help of multi-product price response maps," Journal of Business Research, Elsevier, vol. 76(C), pages 219-236.
    3. Lachapelle, Ugo & Burke, Matthew & Brotherton, Aiden & Leung, Abraham, 2018. "Parcel locker systems in a car dominant city: Location, characterisation and potential impacts on city planning and consumer travel access," Journal of Transport Geography, Elsevier, vol. 71(C), pages 1-14.
    4. Raulinajtys-Grzybek, Monika, 2014. "Cost accounting models used for price-setting of health services: An international review," Health Policy, Elsevier, vol. 118(3), pages 341-353.
    5. Bruno Durand & Hakim Akeb & Btissam Moncef, 2018. "Building a collaborative solution in dense urban city settings to enhance parcel delivery: An effective crowd model in Paris [L'élaboration d'une solution collaborative de livraisons urbaines en vu," Post-Print hal-01781155, HAL.
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    Cited by:

    1. Kahr, Michael, 2022. "Determining locations and layouts for parcel lockers to support supply chain viability at the last mile," Omega, Elsevier, vol. 113(C).

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