The impact of optimal parcel locker locations on costs and the environment

Abstract

PurposeLast-mile delivery is associated with a negative environmental impact and high costs. The purpose of this paper is to develop an approach to designing stationary parcel locker (SPL) networks while minimizing both CO2 equivalent (CO2e) emissions and costs during delivery and pick-up.Design/methodology/approachThis study uses a multinomial logit model to evaluate recipients' willingness to use SPLs based on their availability at home and travel distance. To determine optimal SPL locations, this study formulates a mixed-integer linear programming model.FindingsThe empirical study of different regional clusters reveals that optimal SPL locations can generate cost savings of up to 11.0%. SPLs have a positive impact on total CO2e emission savings in urban areas (i.e. up to 2.5%), but give rise to additional emissions (i.e. 4.6%) in less populated areas due to longer travel distances during the pick-up process.Originality/valueThis paper optimizes SPL locations and the ecological effect of SPLs by minimizing emissions and costs simultaneously. Furthermore, it extends existing discrete choice models by also including recipients' availability at home, increasing the accuracy of recipients' preferences. So far, the effect of SPLs has been studied for metropolitan areas only. A global logistics service provider shared a real dataset which allows us to study seven different regional clusters ranging from rural areas to large cities. Thus, this study contributes to the field of sustainable urban logistics.