Locating Movable Parcel Lockers under Stochastic Demands

Abstract

The movable unit equipped with a set of lockers has been recently developed as a new mode to improve the efficiency of the last mile delivery. Locating a set of movable parcel locker units appropriately is a fundamental factor to promote the merits of movable parcel lockers. However, the difficulty in determining where to locate movable parcel locker units arises from the stochastic characteristics of demands. Therefore, we propose a robust optimization approach to determine the number of movable parcel locker units and their locations simultaneously with the aim to minimize the operating cost under stochastic demands and mobility restrictions. To reduce the complexity of the optimization model, the non-linear constraints have been transformed into the linear counterparts, resulting in an integer linear programming (ILP) model that can be solved by commercially available mathematical programming solvers. The results from the numerical examples indicate the proposed approach can obtain high robustness with a small extra cost within reasonable time. In addition, it is found that if each unit is equipped with more lockers, fewer movable parcel locker units are required to accommodate the demands with less operating cost, as the demand points can be clustered into a few intensive self-pickup sites.