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Dynamic vehicle routing problem considering simultaneous dual services in the last mile delivery

Yandong He (College of Mechanical Engineering, Chongqing University, Chongqing, China; School of Industrial Engineering, Eindhoven University of Technology, Eindhoven, The Netherlands and Research Center on Modern Logistics, Graduate School at Shenzhen, Shenzhen, China)
Xu Wang (College of Mechanical Engineering, Chongqing University, Chongqing, China)
Fuli Zhou (School of Economics and Management, Zhengzhou University of Light Industry, Zhengzhou, China)
Yun Lin (College of Mechanical Engineering, Chongqing University, Chongqing, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 25 October 2019

Issue publication date: 8 April 2020

Abstract

Purpose

This paper aims to study the vehicle routing problem with dynamic customers considering dual service (including home delivery [HD] and customer pickup [CP]) in the last mile delivery in which three decisions have to be made: determine routes that lie along the HD points and CP facilities; optimize routes in real time, which mode is better between simultaneous dual service (SDS, HD points and CP facilities are served simultaneously by the same vehicle); and respective dual service (RDS, HD points and CP facilities are served by different vehicles)?

Design/methodology/approach

This paper establishes a mixed integer linear programing model for the dynamic vehicle routing problem considering simultaneous dual services (DVRP-SDS). To increase the practical usefulness and solve large instances, the authors designed a two-phase matheuristic including construction-improvement heuristics to solve the deterministic model and dynamic programing to adjust routes to dynamic customers.

Findings

The computational experiments show that the CP facilities offer greater flexibility for adjusting routes to dynamic customers and that the SDS delivery system outperforms the RDS delivery system in terms of cost and number of vehicles used.

Practical implications

The results provide managerial insights for express enterprises from the perspective of operation research to make decisions.

Originality/value

This paper is among the first papers to study the DVRP-SDS. Moreover, this paper guides the managers to select better delivery mode in the last mile delivery.

Keywords

Acknowledgements

This study was supported by National Science and Technology Support Program of China under Grant No. 2015BAH46F01, the Chongqing City Key Science Program Project under Grant No. cstc2015zdcy-ztzx60009 and cstc2015yykf-c60002 and the fundamental research funds for the central universities under Grant No. 106112016CDJXZ338825. The authors would like to thank the editor and anonymous review for their suggestions in improving the quality of this paper, and we are also grateful to the other people in the team of “City Logistics Joint Distribution under Online Shopping” for collaboration and discussion.

Citation

He, Y., Wang, X., Zhou, F. and Lin, Y. (2020), "Dynamic vehicle routing problem considering simultaneous dual services in the last mile delivery", Kybernetes, Vol. 49 No. 4, pp. 1267-1284. https://doi.org/10.1108/K-05-2018-0236

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited