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A Simulation-Optimization Approach for the Management of the On-Demand Parcel Delivery in Sharing Economy

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This paper investigates a dynamic and stochastic vehicle routing problem with time windows that considers the use of multiple delivery options and crowd drivers, reflecting the synchromodality in the urban… Click to show full abstract

This paper investigates a dynamic and stochastic vehicle routing problem with time windows that considers the use of multiple delivery options and crowd drivers, reflecting the synchromodality in the urban context. We propose a multi-stage stochastic model, and we solve the problem by using a simulationoptimization strategy. It relies on a Monte Carlo simulation and a large neighborhood search (LNS) heuristic for optimization. We conduct a case study in the medium-sized city of Turin (Italy) to measure the potential impact of integrating cargo bikes and crowd drivers in parcel delivery. Experimental results show that combining crowd drivers and green carriers with the traditional van to manage the parcel delivery is beneficial in terms of economic and environmental cost-saving, while the operational efficiency decreases. Besides, the green carriers and crowd drivers are promising delivery options to deal with online customer requests in the context of stochastic and dynamic parcel delivery. The resulting set of policies are part of the outcomes of the Logistics and Mobility Plan 2019-2021 in the Piedmont region.

Keywords: crowd drivers; simulation; delivery; optimization; parcel delivery

Journal Title: IEEE Transactions on Intelligent Transportation Systems
Year Published: 2021

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