Abstract

This article proposes a method to reduce working time violations of a real-world courier service in the urban logistics with time-dependent traffic information. The challenge is to reduce working time violation without creating significant changes to the urban logistics plan which provides city coverage to each driver. Furthermore, courier businesses require time-dependent traffic information to have an integrated traffic routing plan. This process will require very long enquiry time as the traffic information is available online, but a good decision must be made as soon as possible. To tackle the problem, we first propose a heuristic method for route adjustment using a particular traffic time instance (single traffic time). The route solution obtained from the single traffic time is subsequently transferred to the time-dependent traffic scenario. Computational results demonstrate that the heuristic route adjustment algorithm could decrease working time violations and create a balanced working time solution. We include also in-depth analyses on the optimal working time, and the effect of using a single traffic time solution in the time-dependent traffic information environment. The obtained results illustrate the effectiveness of our approach in solving the real applications of time-dependent vehicle routing in urban logistics.

Highlights

  • In these modern days, demands for delivery services are growing rapidly, especially with the growth of the e-commerce market

  • We examine the transferability of the route solution obtained earlier with a fixed time instance to the problem with time-dependent traffic information or actual traffic time

  • Our result shows that the route adjustment algorithm could remove all working time violations except for two problems of Scenario B with traffic time at 11 a.m. and 12 p.m. as the vehicle speed for the two time instances are very slow

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Summary

Introduction

Demands for delivery services are growing rapidly, especially with the growth of the e-commerce market. The expansion greatly increases demands for direct-to-customer deliveries. The last leg of the direct-to-customer supply chain, known as the last-mile logistics, is the delivery of products from outlets to customers. This part of logistics may incur more costs than other parts of management costs [1] as it involves multiple aspects such as security when encountering not-at-home recipients, greenhouse gas emissions, a lack of critical mass in some areas which may require additional vehicles to make delivery and add extra costs to the courier, etc.

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