Capacitated Vehicle Routing Problem with Delivery Options: Private or Shared Location

Amira Saker, Junichi Iijima, Islam Ali, Amr Eltawil

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Last-mile delivery costs are increasingly growing due to the rapid growth in E-commerce and the proliferation of online shopping especially after COVID-19 crisis. Integrating shared location delivery systems with home delivery has been a new trend in tackling last mile delivery challenges. This paper studies the Capacitated Vehicle Routing Problem with Delivery Options (CVRPDO). In this problem, customers can choose between picking up their requests from a shared location or receiving them at their homes within a preferred time window. The problem is formulated mathematically to minimize the total delivery costs considering the customers' preferences. Results include comparisons between delivery costs in the standard Capacitated Vehicle Routing Problem (CVRP) and those in the CVRPDO. Results demonstrate that the CVRPDO outperforms the CVRP by a considerable margin for varied-size instances providing a justification for substantial investment in establishing shared locations for delivery.

Original languageEnglish
Title of host publicationMoving Integrated Product Development to Service Clouds in the Global Economy - Proceedings of the 21st ISPE Inc. International Conference on Concurrent Engineering, CE 2014
EditorsLoon-Ching Tang
PublisherIOS Press BV
Pages776-785
Number of pages10
ISBN (Electronic)9781643684086
DOIs
Publication statusPublished - 27 Jul 2023
Event10th International Conference on Industrial Engineering and Applications, ICIEA 2023 - Phuket, Thailand
Duration: 4 Apr 20236 Apr 2023

Publication series

NameAdvances in Transdisciplinary Engineering
Volume35
ISSN (Print)2352-751X
ISSN (Electronic)2352-7528

Conference

Conference10th International Conference on Industrial Engineering and Applications, ICIEA 2023
Country/TerritoryThailand
CityPhuket
Period4/04/236/04/23

Keywords

  • Last-mile delivery
  • home delivery
  • shared locations pickup

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