Sustainable last mile logistics employing drones and e-bikes

Abstract

Last mile delivery is an important and growing part of the supply chain that has a sizeable negative environmental impact. This paper considers more sustainable approaches to home-delivery that are pragmatic for many non-rural environments. We address the two-echelon, multi-trip, capacitated vehicle routing problem with home-delivery and optional self-pickup services using different combinations of drones, trucks, and electric-assisted bikes (i.e. e-bikes). In the proposed approach, parcels are transported from a depot to parcel lockers by either drones or trucks and are then delivered to customer locations by either e-bikes or trucks. The four approaches range from the most sustainable (drones then e-bikes) to partly green (drone then truck or truck then e-bike) to finally the traditional (truck then truck). We formulate a mathematical model that determines the vehicle routes to minimize the total cost, which consists of vehicle operational cost and operator wages. The four types of delivery networks are assessed and compared for both costs and emissions. Experimental results suggest that with a modest increase in total cost (as little as 13%), emission reductions of up to 92%, on average, can be achieved when using the greenest delivery strategy of drones and e-bikes. The other delivery options have varying tradeoffs between costs and environmental impact. The percentage of self-pickup customers is an influencing factor to consider when choosing the delivery strategy that best meets the organization’s budget and environmental goals, especially when using e-bikes in the second echelon.