Integrating collection-and-delivery points in the strategic design of urban last-mile e-commerce distribution networks

Milena Janjevic, Matthias Winkenbach and Daniel Merchán

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 131, issue C, 37-67

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.

Keywords: Collection-and-delivery points; Fulfillment options; Last-mile delivery; Continuum approximation (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (34)

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DOI: 10.1016/j.tre.2019.09.001

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