The last-mile vehicle routing problem with delivery options

Abstract The ongoing rise in e-commerce comes along with an increasing number of first-time delivery failures due to the absence customer at location. Failed deliveries result rework which turn has a large impact on carriers’ cost. In classical vehicle routing problem (VRP) time windows, each request only one location and window describing where when shipments need be delivered. contrast, we introduce analyze options (VRPDO), some requests can shipped alternative locations possibly different windows. Furthermore, customers may prefer options. carrier must then select, for request, option such that overall cost is minimized given service level regarding preferences achieved. Moreover, share common location, e.g., locker, capacities respected assigning shipments. To solve VRPDO exactly, present new branch-price-and-cut algorithm. associated pricing subproblem shortest-path resource constraints bidirectional labeling algorithm auxiliary network. We focus comparison two modeling approaches network optimal solutions instances up 100 provide 17 benchmark set VRP roaming locations.