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International Transactions in Operational Research
Article . 2024 . Peer-reviewed
License: CC BY
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Article . 2026
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Districting in last‐mile delivery with stochastic customers

Authors: Bruni, Maria Elena; Fadda, Edoardo; Fedorov, Stanislav; Perboli, Guido;

Districting in last‐mile delivery with stochastic customers

Abstract

Abstract Due to the peculiarities of city streets, last‐mile logistics is typically organized using territory‐based routing approaches, which divide the city into a set of districts and assign drivers to deliver in one or more of them. This allows drivers to develop a deep understanding of the characteristics of each district, and clients benefit from consistent service. However, these advantages must be carefully weighed against the flexibility of daily customer assignments, which enable planners to maximize driver utilization and minimize routing costs. In this paper, we propose a new holistic framework for defining districts, considering the impact on the quality of logistics decisions and fleet capacity usage. Specifically, we address how districting decisions affect the demand distribution within each district. Computational experiments on both simulated and realistic instances demonstrated a significant reduction in costs compared to benchmark techniques.

Country
Italy
Keywords

last-mile delivery, city logistics, capacity management, districting, capacity management; city logistics; demand uncertainty; districting; last-mile delivery, demand uncertainty

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    popularity
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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
hybrid