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How to Choose “Last Mile” Delivery Modes for E-Fulfillment

Author

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  • Xuping Wang
  • Linmin Zhan
  • Junhu Ruan
  • Jun Zhang

Abstract

“Last mile” delivery has become one of the bottlenecks of e-logistics. This paper aims to explore the competitiveness of three “Last mile” delivery modes—attended home delivery (AHD), reception box (RB), and collection-and-delivery points (CDPs) in different scenarios, especially in high population density scenario. The advantages and disadvantages of each mode are introduced first. Then each mode’s operation efficiency is solved with different kinds of vehicle routing problem (VRP) models and genetic algorithm (GA). Finally the cost of each mode is calculated on the basis of cost structures and operation efficiencies. The results show that different modes are suitable for different scenarios: (i) AHD and independent reception box work better in a scenario with sparse population or small order quantity; (ii) shared reception box and CDPs are more appropriate in the scenario with high population density and large order quantity, and the better one depends on the cost of labors and facilities; (iii) RB is desirable in some circumstances as delivering fresh vegetables and fruits to the ones living in high-grade communities.

Suggested Citation

  • Xuping Wang & Linmin Zhan & Junhu Ruan & Jun Zhang, 2014. "How to Choose “Last Mile” Delivery Modes for E-Fulfillment," Mathematical Problems in Engineering, Hindawi, vol. 2014, pages 1-11, June.
    • Handle: RePEc:hin:jnlmpe:417129
    DOI: 10.1155/2014/417129
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    Cited by:

    1. Nima Pourmohammadreza & Mohammad Reza Akbari Jokar, 2023. "A Novel Two-Phase Approach for Optimization of the Last-Mile Delivery Problem with Service Options," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    2. Lin Zhou & Yanping Chen & Yi Jing & Youwei Jiang, 2021. "Evolutionary Game Analysis on Last Mile Delivery Resource Integration—Exploring the Behavioral Strategies between Logistics Service Providers, Property Service Companies and Customers," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    3. Kexin Bi & Mengke Yang & Latif Zahid & Xiaoguang Zhou, 2020. "A New Solution for City Distribution to Achieve Environmental Benefits within the Trend of Green Logistics: A Case Study in China," Sustainability, MDPI, vol. 12(20), pages 1-25, October.
    4. 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).
    5. Feng Li & Zhi-Ping Fan & Bing-Bing Cao & Xin Li, 2020. "Logistics Service Mode Selection for Last Mile Delivery: An Analysis Method Considering Customer Utility and Delivery Service Cost," Sustainability, MDPI, vol. 13(1), pages 1-22, December.
    6. Snežana Tadić & Mladen Krstić & Ljubica Radovanović, 2024. "Assessing Strategies to Overcome Barriers for Drone Usage in Last-Mile Logistics: A Novel Hybrid Fuzzy MCDM Model," Mathematics, MDPI, vol. 12(3), pages 1-25, January.
    7. Roberta Alves & Renato da Silva Lima & Leise Kelli De Oliveira & Alexandre Ferreira de Pinho, 2022. "Conceptual Framework for Evaluating E-Commerce Deliveries Using Agent-Based Modelling and Sensitivity Analysis," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    8. Abdollahi, Mohammad & Yang, Xinan & Nasri, Moncef Ilies & Fairbank, Michael, 2023. "Demand management in time-slotted last-mile delivery via dynamic routing with forecast orders," European Journal of Operational Research, Elsevier, vol. 309(2), pages 704-718.
    9. Vincent F. Yu & Hadi Susanto & Yu-Hsuan Yeh & Shih-Wei Lin & Yu-Tsung Huang, 2022. "The Vehicle Routing Problem with Simultaneous Pickup and Delivery and Parcel Lockers," Mathematics, MDPI, vol. 10(6), pages 1-22, March.
    10. Christian Tilk & Katharina Olkis & Stefan Irnich, 2021. "The last-mile vehicle routing problem with delivery options," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(4), pages 877-904, December.
    11. Buldeo Rai, Heleen & Verlinde, Sara & Macharis, Cathy, 2021. "Unlocking the failed delivery problem? Opportunities and challenges for smart locks from a consumer perspective," Research in Transportation Economics, Elsevier, vol. 87(C).

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