A Newsvendor Model for Last-Mile Fleet Sizing

We study the tactical problem of determining a last-mile delivery fleet size while accounting for day-to-day uncertainty in the number and location of customer requests. An optimally sized fleet must balance the cost of contracting vehicles against the penalty costs of unserved customers: a larger fleet reduces the risk of unserved demand, but a smaller … Read more

Strategic Sizing of Collection and Delivery Point Networks for Urban Parcel Distribution

Collection and delivery points (CDPs) allow logistics operators to consolidate multiple customer delivery requests on a single vehicle stop, reducing distribution costs. However, for customers to adopt CDPs, they must be willing to travel to a nearby CDP to pick up their parcels. This choice depends on the customer’s personal preferences, the proximity of CDPs, … Read more