A Modified Benders Decomposition Algorithm for a Last-mile Network with Flexible Delivery Options

The purpose of this paper is to introduce an integrated and specialized approach tackling a challenging issue, known as “Last-mile Transportation”. This which classified in terms the decision-making level at tactical level, model operational application processes prominent businesses online commerce developed countries, while it has attracted little attention from operation-research aspect. single-echelon network that includes central distributor, parcel lockers, customers, allowing customers take advantage three flexible product delivery options after purchasing product. In first option, parcels are delivered door time window specified by customer. second pick up desired lockers with discount, third leave choice type company under gaining attractive discount. Offering targeted discounts based on selected option encourage many possible for cooperation guarantee gradual development parcel-locker management lever other innovations study. To solve model, Benders decomposition algorithm been modified variable neighborhood search local branching strategies. results obtained analysis parameters related problem indicate efficiency validity presented different scenarios proposed solution large-sized instances.