Two-Echelon Vehicle-Routing Problem: Optimization of Autonomous Delivery Vehicle-Assisted E-Grocery Distribution

Abstract

The last mile problem of E-grocery Distribution comprises one of the most costly and highest polluting components of the supply chain in which companies deliver goods to end customers. To reduce transport cost and fuel emissions, a new element of ground-based delivery services, autonomous delivery vehicles (ADVs), is included in the E-grocery distribution system for improving delivery efficiency. Thus, the objective of this study is to optimize a two-echelon distribution network for efficient E-grocery delivery, where conventional vans serve the delivery in the first echelon and ADVs serve delivery in the second echelon. The problem is formulated as a two-echelon vehicle routing problem with mixed vehicles (2E-VRP-MV) with a nonlinear objective function, in which the total transport and emission costs are optimized. This optimization is based on the flow assignment at each echelon and to realize routing choice for both the van and ADV. A two-step clustering-based hybrid Genetic Algorithm and Particle Swarm Optimization (C-GA-PSO) algorithm is proposed to solve the problem. First, the end customers are clustered to the intermediate depots, named satellites, based on the minimized distance and maximized demand. To enhance the efficiency of resolving the 2E-VRP-MV-model, a hybrid GA-PSO algorithm is adopted to solve the vehicle routing problem. Computational results of up to 21, 32, 50, and 100 customers show the effectiveness of the methods developed here. At last, the impacts of the layout of the depot-customer and customer density on the total cost are analyzed. This study sheds light on the tactical planning of the multi-echelon sustainable E-grocery delivery network.

Keywords

• E-grocery delivery network
• autonomous delivery vehicle
• last-mile delivery