Optimal location analysis of delivery parcel-pickup points using AHP and network huff model: A case study of shiweitang sub-district in Guangzhou city, China

Abstract

The use of parcel-pickup points (PPPs) is an effective approach for solving the last-mile problem. However, few studies provide specific guidance for the optimal organization of PPPs. Here, a geographic information system(GIS)-based hybrid model was developed combining the widely used analytic hierarchy process (AHP) multi-criteria analysis method with the Huff model that predicts the number of visiting customers to determine the optimal facility for collaboration and service as a PPP. Using this model, a decision-maker can select the highest-ranking facility or use the fluctuation ranking graph to determine a priority list of candidate facilities according to the appropriate PPP service distance. Our findings suggest that the optimal candidate facility should be located near high population density areas, a dense road network, and few geographic barriers. The facility should have a high attractiveness value, long business hours, and convenient access to public transportation, cover a large, high-population area, and should be a retail chain store. Based on these findings, the AHP method can improve the accuracy of obtaining the facility attractiveness value using the Huff model. Facility attractiveness has a strong effect on the resulting number of customers in the case of acceptably long distances to residential buildings.