Abstract
Attended Home Delivery, where customer attendance at home is required, is an essential last-mile delivery challenge, e.g., for valuable, perishable, or oversized items. Logistics service providers are often faced no-show customers. In this paper, we consider the delivery problem in which customers can be revisited on the same day by a courier in the case of a failed first delivery attempt. Specifically, customer presence uncertainty is considered in a two-stage stochastic program, where penalties are introduced as recourse actions for failed deliveries. We build on the notion of a customer availability profile defined as a profile containing historical time-varying probability information of successful deliveries. We tackle this stochastic program by developing an efficient parallelized Adaptive Large Neighborhood Search algorithm. Our results show that by achieving a right balance between increasing the hit rate and reducing travel cost, logistics service providers can realize costs savings as high as 32% if they plan for second visits on the same day.
Original language | English |
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Pages (from-to) | 194-220 |
Number of pages | 27 |
Journal | Transportation Research Part B: Methodological |
Volume | 170 |
Early online date | 3 Mar 2023 |
DOIs | |
Publication status | Published - 30 Apr 2023 |
Bibliographical note
Funding Information:Gilbert Laporte was partially supported by the Canadian Natural Sciences and Engineering Research Council, Canada under grant 2015-06189 . This research was also funded by The Dutch Research Council (NWO), The Netherlands Data2Move project under grant 628.009.013 . This work was carried out on the Dutch national e-infrastructure with the support of the SURF Cooperative. These supports are greatly acknowledged. Thanks are due to the associate editor and to the referees for their valuable comments.
Funding
Gilbert Laporte was partially supported by the Canadian Natural Sciences and Engineering Research Council, Canada under grant 2015-06189 . This research was also funded by The Dutch Research Council (NWO), The Netherlands Data2Move project under grant 628.009.013 . This work was carried out on the Dutch national e-infrastructure with the support of the SURF Cooperative. These supports are greatly acknowledged. Thanks are due to the associate editor and to the referees for their valuable comments. Gilbert Laporte was partially supported by the Canadian Natural Sciences and Engineering Research Council, Canada under grant 2015-06189. This research was also funded by The Dutch Research Council (NWO), The Netherlands Data2Move project under grant 628.009.013. This work was carried out on the Dutch national e-infrastructure with the support of the SURF Cooperative. These supports are greatly acknowledged. Thanks are due to the associate editor and to the referees for their valuable comments.
Keywords
- Adaptive Large Neighborhood Search
- Attended home delivery
- Customer availability profile
- Last-mile delivery
- Routing
ASJC Scopus subject areas
- Civil and Structural Engineering
- Transportation