Performances in Last-Mile Deliveries involving Cyclic Services of Shuttles and Cargo Bikes

Abstract

This study introduces a novel approximation model that integrates the ideologies of order statistics and max-plus algebra in representing the collection and distribution service schemes of a last-mile delivery system. Under the respective schemes, electric cargo bikes (e-bikes) perform the last-mile delivery near a microhub with shuttles collecting packages from multiple local logistics hubs (or local hubs, for short) and/or distributing packages to multiple microhubs. The framework is designed to estimate the cyclic capacity under varying cargo carrying capacities of the e-bikes and service network configurations. Real-world data, such as the geographic conditions of the streets around the microhubs in Seoul and their catchment areas, were utilized in statistical experiments. The study’s findings are applicable to delivery service providers, to enable them to make informed decisions when designing and implementing last-mile delivery systems that are both economically viable and environmentally sustainable in meeting customers’ expectations.