Optimizing the Route and Location Planning for Cargo Bikes and Mobile Parcel Lockers

Abstract

Last-mile delivery is a significant topic of interest for parcel service providers because it is the most expensive and time-consuming part of the shipping process. Parcel lockers turned out to be a successful way to consolidate deliveries and reduce transport costs. However, stationary parcel lockers are expensive, and therefore they are economical only in urban areas with many customers. Mobile parcel lockers with changing locations depending on the regional parcel volume in the districts have the potential to overcome this challenge. A pilot project in the German city of Magdeburg currently implements mobile parcel lockers that are transported by cargo bikes. Based on actual customer data from the pilot project, we evaluate the utility of mobile parcel lockers and cargo bikes in terms of delivery time, driven distance and emissions. Afterwards, we compare the concept with cargo bikes and mobile parcel lockers to the direct delivery with internal combustion engine vans. The investigated case study considers the route and location planning in one urban district with several feasible locations for mobile parcel lockers. A new algorithm solves the resulting maximal covering location and capacitated vehicle routing problems in an integrated manner. Our research provides an initial quantitative assessment of mobile parcel lockers and evaluates their use in a practical case study.