A parcel network flow approach for joint delivery networks using parcel lockers

Current courier networks in metropolitan areas are characterised by utilising fleets of vans that perform collection and distribution routes independently. This results in long stem distances, low load factors and high environmental costs. Joint delivery systems have the potential to reduce the distances of pick-up and drop-off routes. In this context, parcel lockers can be utilised to transfer goods between vans, electrical vehicles and bikes to improve the efficiency and sustainability of courier networks. This paper presents a model for designing joint delivery networks in urban areas by utilising parcel lockers. This model has a two-level structure: the lower level dealing with multi-depot capacitated vehicle routing problems (MDCVRP) for a set of depots and lockers whilst the upper level being a (minimum-cost) parcel network flow problem (PNFP) considering goods delivered between depots and lockers and the selection of lockers' positions and sizes. A hybrid algorithm integrating a Genetic Algorithm with the Lin-Kernighan Heuristic has been developed. The GA focuses on finding solutions for the PNFP. Once the paths of parcel flow are determined, the LKH optimises vehicle flow. This paper is the first to consider the use of parcel lockers for business-to-business networks in the form of MDCVRP.