Attended Home Delivery in Last-Mile Logistics

31 Pages Posted: 8 Feb 2022

See all articles by Sami Serkan Özarık

Sami Serkan Özarık

affiliation not provided to SSRN

Virginie Lurkin

University of Lausanne

Lucas Veelenturf

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

T. van Woensel

Eindhoven University of Technology (TUE)

Gilbert Laportec

HEC Montréal

Multiple version iconThere are 2 versions of this paper

Abstract

Attended Home Delivery, where customer attendance at home is required, is an essential last-mile delivery challenge, e.g., for valuable, perishable, or oversized items. Logistics service providers are often faced with the absence of their customers. In this paper, we consider the delivery problem in which customers can be revisited on the same day by a courier in the case of a failed first delivery attempt. Specifically, customer presence uncertainty is considered in a two-stage stochastic program, where penalties are introduced as recourse actions for failed deliveries. We build on the notion of a Customer Availability Profile (CAP) defined as a profile containing historical time-varying probability information of successful deliveries. We tackle this stochastic program by developing an efficient parallelized ALNS solution algorithm. Our results show that by achieving a right balance between increasing the hit rate and reducing travel cost, logistics service providers can realize costs savings as high as 32% if they plan for second visits on the same day.

Keywords: Routing, Attended home delivery, Adaptive Large Neighborhood Search, Customer availability, Last-mile delivery

Suggested Citation

Özarık, Sami Serkan and Lurkin, Virginie and Veelenturf, Lucas and van Woensel, T. and Laportec, Gilbert, Attended Home Delivery in Last-Mile Logistics. Available at SSRN: https://ssrn.com/abstract=4029678 or http://dx.doi.org/10.2139/ssrn.4029678

Sami Serkan Özarık (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Virginie Lurkin

University of Lausanne ( email )

Lucas Veelenturf

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

Rotterdam
Netherlands

T. Van Woensel

Eindhoven University of Technology (TUE) ( email )

PO Box 513
Eindhoven, 5600 MB
Netherlands

Gilbert Laportec

HEC Montréal ( email )

Montréal, H3T 2A7
Canada

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