A holistic continuous approximation framework for strategic last-mile distribution planning
Blessy Kirubakaran , Anmol Pahwa, Surendra Reddy Kancharla , and 1 more author
Transportation Research Interdisciplinary Perspectives
The conventional approach to modelling last-mile distribution operations involves use of the discrete formulation method which renders a representative mathematical model necessitating use of sophisticated solution techniques. While such an intensive approach is justified when decision-makers require a precise plan to support operational planning, this level of precision is redundant for strategic planning, wherein available information is representative but not necessarily exact. To this end, continuous approximation (CA) method offers a practical alternative with use of continuous density functions that estimate parameters approximately, thus striking a balance between estimation accuracy and computational effort. However, typical CA-based routing frameworks assume a simplified distribution environment that significantly limits the capability of such frameworks to accurately model last-mile operations in real-world distribution environments, such as postal service, e-commerce, q-commerce, waste collection, emergency service etc. Thus, the objective of this work is to develop a holistic CA framework for the Vehicle Routing Problem (VRP) to facilitate strategic last-mile distribution planning within diverse logistic settings. Specifically, this study synthesizes a total of 1080 distribution environments, each with peculiar distribution structure and distinctive customer characteristics. Subsequently, it optimizes last-mile distribution for distribution environment instance using an Adaptive Large Neighborhood Search (ALNS) metaheuristic. Finally, this work develops a robust CA-based functional form through symbolic regression to precisely estimate the total distribution tour length across the various distribution environments. In doing so, this work supports strategic decision-making for a wide scope of logistic operators that may have representative but not necessarily exact information.