A Review of Literature on Vehicle Routing Problems of Last-Mile Delivery in Urban Areas

Abstract

Logistics has long been important in an industrial society. Compared with the traditional structure of distribution, which requires freight to be delivered mostly to warehouses or retail stores, customers now often prefer packages to be delivered to their residences, especially after the delivery challenges during the COVID-19 pandemic. The delivery of parcels to urban residential areas increases the challenge due to the amount of delivery volume, tight delivery schedules, and continuously changing delivery conditions. Last-mile delivery tries to address the challenges, taking advantage of the available automation, sensor and communication technologies, and people’s attitudes toward parcel delivery for the benefit of all stakeholders. Various approaches to last-mile delivery have been proposed and analyzed in the literature. This paper reviews the recent literature on vehicle routing for last-mile delivery. The review identified four major categories: crowdshipping, parcel lockers, delivery by sidekicks, and delivery to optional points. The nature of the problems is discussed in five aspects: fleet capacity, time window, fleet option, dynamism of input, and stochastic parameters. The review identifies the achievements and limitations of the research in the areas and proposes a future research agenda.