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) are fixed locations where customers can pick up parcels and/or drop off shipments or returns rather than requiring home delivery. CDPs allow logistics operators to consolidate multiple customer delivery requests on fewer vehicle stops, reducing distribution costs. However, for customers to adopt CDPs, they must be willing to travel to … Read more