Parcel locker location problem with selectable volume sizes and heterogeneous customers in the last mile delivery

Abstract

This study introduces a novel parcel locker location problem in the last mile delivery where each parcel locker is equipped with a set of selectable volume sizes and provides services for two types of customers: commuters and home-based customers. We establish a pickup cost model to quantify the effort exerted by customers during the retrieval process. Furthermore, we design a satisfaction function to measure customers’ willingness to retrieve items from a specific parcel locker. Finally, we implement a financial incentive mechanism to enhance customer satisfaction by reducing the pickup cost. To solve this problem, we formulate a problem-specific scatter search algorithm. Extensive experiments demonstrate the computational effectiveness of the proposed algorithm. Furthermore, sensitivity analyses show that the selectable volume size model can reduce the total cost by up to 16.8%, while “pickup on the way” can achieve a reduction of up to 63.97% in our instances.