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A combined fleet size and mix vehicle routing model for last-mile distribution in disaster relief
Florian Diehlmann1, Katharina Eberhardt2, Markus Lüttenberg2, Florian Klaus Kaiser3, Frank Schultmann2
1BTS CSCO Advisory, Customer Services & Delivery MEE, SAP Deutschland SE & Co.KG; 2Institute for Industrial Production (IIP), Karlsruhe Institute of Technology (KIT); 3Agnostic Intelligence AG
Disasters pose a significant challenge for last-mile operations, straining emergency logistics systems' ability to provide timely aid and support. Therefore, ensuring the rapid and cost-effective distribution of goods to people in need is one of the most critical tasks of humanitarian logistics.
In this context, we formulate a Fleet Size and Mix Vehicle Routing Problem for Disaster Management (FSMVRP-DM) that extends the known FSMVRP with a fleet composition decision and adapts it to the specifics of disaster relief logistics. The model aims to optimize routing and fleet decisions to minimize the sum of operating costs and population deprivation costs. Moreover, we introduce a prioritization approach to monitor deprivation time during transport resource scarcity.
In non-disruptive times, drones are restricted by “no-fly-zones” – for example, environmental protection areas. However, this restriction might be temporary repealed by authorities during disaster relief. The additional possibilities may increase efficiency significantly, though this requires communication and coordination through public-private collaboration. Our model considers this to prevent extended supply gaps at specific demand points and minimize suffering costs.
A case study is conducted in the German state of Baden-Württemberg to illustrate the potential applicability of the model and provide implications for decision-makers in a real-world setting. The findings highlight the advantages of integrating diverse and innovative fleet types, such as drones, and prioritizing the supply of multiple demand points when resources are scarce.
Consequently, optimizing fleet size and composition can result in substantial cost reductions and efficient resource allocation. Overall, our research offers decision support for authorities by enhancing information transparency, facilitating resource management, strengthening the effectiveness of disaster response capabilities, and providing resilient and adaptive strategies for last-mile distribution efforts. Certain factors should be addressed in future works, such as time windows, additional network constraints, and heuristic algorithms. Nevertheless, our study derives valuables insights that will contribute to improving last-mile logistics in the future.
Characterizing Sustainability of Urban Last-Mile Delivery Logistics: An Ethiopian Case
Busha Temesgen Kitessa
Addis Ababa University, Ethiopia
Globalization, growing population and urbanization, and changing buyer behavior due to pandemics such as COVID-19 increased e-commerce practice adoption throughout the globe. Following an improved access to digital ordering and settling payments for online transactions, ensuring faster, cheaper, sustainable and inclusive last mile delivery is becoming critical. Studies show last mile delivery logistics is considered as very ineffective, expensive (acounting for 13 to 75% of the full supply chain cost), and polluting (resulting in environmental and social externalities such as air and noise pollution, accidents and road congestion, parking problems, causing the emergence of health problems) globally. Research in this area is fragmented with disparate conclusions. Ethiopia is the second populus nation in Africa with huge potential for last mile delivery business. Addis Ababa (new flower in local language) is the Capital of Ethiopia with a projected residents of 5,704,000 in 2024 of which roughly 40% is below 25 years of age. The government of Ethiopia has been currently working towards the realization of Digital Ethiopia by 2025 initiative for ensuring prosperity and creation of job for the youth. In Addis Ababa, city logistics infrastructure is limited or unparraleled with rate of population growth and urbanization. Congestion is becoming more prevalent in the city. People are getting busy as cost of living is increasing hence looking for easy, reliable and efficient last mile delivery services. Some of the routes in the city are not allowed for motor cycles operated by last mile delivery service providers. Business are not concentrated. Most of the vehicles used at the moment are fuel based.There is a tendency from the government towards enforcing the use of electric vehicles aspiring to make the city sustaianble as its name. Eventhough, more than 20 last mile delivery providers have emerged in the city, the status of urban last mile delivery is uncharted from the pecular context of Addis Ababa City. Considering last mile delivery logistics as a multidisciplinary issue, this study aims to explore sustainability of urban last mile delivery logistics. The study will conduct urban last mile delivery logistics stakeholder and process mapping in order to identify weakest link with regard to sustainability, efficiency and inclusivity. Sociogram will be used as a tool to explore level of influence, direction of influence, and strength of relationship among the stakeholders. The study will also utilize the decision making trial and evaluation laboratory (DEMATEL) technique to identify and categorize urban last mile delivery logistics sustainability factors into cause and effect groups. The study will identify urban last mile delivery logistics characteristics of top priority from a developing economy perspective. The findings of this study will guide city logistics leaders and government officials where to focus for improving sustainability while addressing real-time needs of citizens in the urban area.