Highlights We consider multi-echelon distribution networks with the use of collection-and-delivery points. We formulate a non-linear optimization model that includes CDP location decisions. Our model accounts for changes in demand patters occurring with the placement of CDPs. We formulate extended routing cost approximation formulae to enable application to large-scale problem instances. We propose a heuristic solution method and our approach to a real-world case study.
Abstract The use of collection-and-delivery points (CDPs) within multi-echelon distribution networks is becoming an increasingly popular last-mile distribution strategy. In this work, we provide a method to integrate CDPs in the design of multi-echelon distribution networks. We formulate a non-linear optimization model that includes CDP location decisions and accounts for changes in demand patters occurring with their placement. To enable its application to large-scale problem instances, we formulate extended routing cost approximation formulae. We then propose a heuristic solution method and apply the model and solution approach to a real-world case study of last-mile distribution by a major Brazilian e-commerce player.
Integrating collection-and-delivery points in the strategic design of urban last-mile e-commerce distribution networks
2019-09-05
31 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Addressing the Last Mile Problem: Transport Impacts of Collection and Delivery Points
Online Contents | 2009
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