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An Optimization-Based Approach to Evaluate the Operational and Environmental Impacts of Pick-Up Points on E-Commerce Urban Last-Mile Distribution: A Case Study in São Paulo, Brazil

Author

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  • Rhandal Masteguim

    (Graduate Program in Logistic Systems Engineering, Escola Politécnica, Universidade de São Paulo, Sao Paulo 05508-220, Brazil)

  • Claudio B. Cunha

    (Graduate Program in Logistic Systems Engineering, Escola Politécnica, Universidade de São Paulo, Sao Paulo 05508-220, Brazil)

Abstract

Online sales have steadily increased in recent years. Unlike the traditional retail shopping model, e-commerce must deliver custom orders to highly dispersed locations. Consequently, negative effects have been observed in large urban and densely populated areas, such as congestion and pollution. Pick-up points (PPs) are fast-growing solutions that provide parcel delivery and picking services at diverse locations throughout major city centers. This paper describes an optimization-based approach aimed to investigate the conditions in which a network of pick-up points can be more efficient than home deliveries from operational and environmental points of view in urban last-mile distribution. Differently from the related literature, in which analytical models were employed, we use optimization and algorithms to determine the economic and environmental benefits of packages destined for pick-up points instead of home deliveries. The framework was applied to the city of São Paulo, in Brazil. Several scenarios were evaluated, comprising different densities and percentages of deliveries destined for PPs. The results show that PPs can be a promising alternative for reducing the environmental externalities, as fleet and vehicle mileage can be reduced by more than 50%.

Suggested Citation

  • Rhandal Masteguim & Claudio B. Cunha, 2022. "An Optimization-Based Approach to Evaluate the Operational and Environmental Impacts of Pick-Up Points on E-Commerce Urban Last-Mile Distribution: A Case Study in São Paulo, Brazil," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8521-:d:860819
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    References listed on IDEAS

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    1. Alves, Roberta & Pereira, Cecília Aparecida & Lima, Renato da Silva, 2023. "Operational cost analysis for e-commerce deliveries using agent-based modeling and simulation," Research in Transportation Economics, Elsevier, vol. 101(C).
    2. Guarino Neto, Luigi & Geraldo Vidal Vieira, José, 2023. "An investigation of consumer intention to use pick-up point services for last-mile distribution in a developing country," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).

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