Integrated Design of Unmanned Aerial Mobility Network: A Data-Driven Risk-Averse Approach

Wenjuan Hou, Tao Fang, Zhi Pei and Qiao-Chu He

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Abstract: The real challenge in drone-logistics is to develop an economically-feasible Unmanned Aerial Mobility Network (UAMN). In this paper, we propose an integrated airport location (strategic decision) and routes planning (operational decision) optimization framework to minimize the total cost of the network, while guaranteeing flow constraints, capacity constraints, and electricity constraints. To facility expensive long-term infrastructure planning facing demand uncertainty, we develop a data-driven risk-averse two-stage stochastic optimization model based on the Wasserstein distance. We develop a reformulation technique which simplifies the worst-case expectation term in the original model, and obtain a fractable Min-Max solution procedure correspondingly. Using Lagrange multipliers, we successfully decompose decision variables and reduce the complexity of computation. To provide managerial insights, we design specific numerical examples. For example, we find that the optimal network configuration is affected by the "pooling effects" in channel capacities. A nice feature of our DRO framework is that the optimal network design is relatively robust under demand uncertainty. Interestingly, a candidate node without historical demand records can be chosen to locate an airport. We demonstrate the application of our model for a real medical resources transportation problem with our industry partner, collecting donated blood to a blood bank in Hangzhou, China.

Date: 2020-04
New Economics Papers: this item is included in nep-tre
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