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Freight-on-Transit for urban last-mile deliveries: A Strategic Planning Approach

Author

Listed:
  • Diego Delle Donne

    (ESSEC Business School)

  • Laurent Alfandari

    (ESSEC Business School)

  • Claudia Archetti

    (ESSEC Business School)

  • Ivana Ljubić

    (ESSEC Business School)

Abstract

We study a delivery strategy for last-mile deliveries in urban areas which combines freight transportation with mass mobility systems with the goal of creating synergies contrasting negative externalities caused by transportation. The idea is to use the residual capacity on public transport means for moving freights within the city. In particular, the system is such that parcels are first transported from origins (central distribution centers) to drop-in stations, which are stop locations on public vehicles itineraries. Then, they are transported through public vehicles to drop-out stations, from where they are delivered to destination by freighters using green vehicles (such as bikes, drones, porters, etc.). The system is known as Freight-On-Transit (FOT). In this paper, we focus on the strategic decisions related to defining the public transportation network that will take part to the delivery system, i.e., which public vehicle lines and stop locations will be included (and thus equipped for the service). We propose different formulations for the problem and effective heuristic solution approaches based on column generation. We perform exhaustive tests aimed at providing managerial insights on the performance and the efficiency of the system.

Suggested Citation

  • Diego Delle Donne & Laurent Alfandari & Claudia Archetti & Ivana Ljubić, 2021. "Freight-on-Transit for urban last-mile deliveries: A Strategic Planning Approach," Working Papers hal-03457899, HAL.
    • Handle: RePEc:hal:wpaper:hal-03457899
    Note: View the original document on HAL open archive server: https://essec.hal.science/hal-03457899
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    References listed on IDEAS

    as
    1. Renaud Masson & Anna Trentini & Fabien Lehuédé & Nicolas Malhéné & Olivier Péton & Houda Tlahig, 2017. "Optimization of a city logistics transportation system with mixed passengers and goods," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 6(1), pages 81-109, March.
    2. Ozturk, Onur & Patrick, Jonathan, 2018. "An optimization model for freight transport using urban rail transit," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1110-1121.
    3. Bruzzone, Francesco & Cavallaro, Federico & Nocera, Silvio, 2021. "The integration of passenger and freight transport for first-last mile operations," Transport Policy, Elsevier, vol. 100(C), pages 31-48.
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    Keywords

    freight-on-transit; network flow; column generation; mixed integer linear programming;
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