Inventory Last-Mile Delivery Problem: A Case Study Of E-Comerce

Abstract

The logistics industry still faces many challenges and is undergoing development from tech firms that offer 3PLs to manufacturers with skilled technical consultants and advanced software platforms that are equipped with optimization algorithms to address complex and multi-constraint problems in actual transportation problems. Vehicle Routing Problem is becoming a significant issue in the real world, particularly in the ecommerce industry for last-mile delivery of goods to customers. As online shopping grows in popularity and increases considerably, more items are increasingly being canceled or redelivered by customers. In order to compute the penalty costs that raise the degree of customer service while both reducing transportation costs and increasing successful delivery, this thesis considers the Vehicle Routing Problem with a new condition: customer presence, to compute the penalty costs that enhance the successful delivery rate while reducing transportation costs and improving customer service levels. The two methods: ALNS algorithm and ACO algorithm will be considered and programed by Python. The result is to find out better solution as optimal routes, shorter delivery time and minimize the cost. This effort used the suggested model for a district 7 hub of an e-commerce company.