Two-Echelon Dispatching Problem With Mobile Satellites in City Logistics

Abstract

At present, city logistics mostly adopts a two-echelon dispatching model which combines distribution centers located in suburbs and fixed satellites located in urban areas for distribution. However, both expensive rental fees and daily changes of customer demand in metropolitan areas make dispatching route generated by fixed satellites inefficient. Moreover, the existing mobile depot model needs a large investment for facilities. In this paper, we propose a two-echelon city dispatching model with mobile satellites (2ECD-MS) which locations of mobile satellites change according to demands of customers to ensure the efficiency of delivery routes in every day. A cluster-based variable neighborhood search scheduling algorithm is proposed to determine locations of mobile satellites and dispatching routes of trucks and tricycles. Then, the 2ECD-MS is extended to 2ECD-MS-TDD to allow trucks dispatching directly (TDD) for further cost reduction. Experimental results show that the 2ECD-MS significantly reduces the total cost against the model using fixed satellites mode by 3.5% while the 2ECD-MS-TDD further reduces the total cost against the 2ECD-MS significantly by 3.25% in 54 cases with different customer scales, geographical scopes, and distribution types. These show the superiority of the proposed methods in cost reduction for city logistics in comparison to the traditional fixed model.