An Optimization-Based Approach to Evaluate the Operational and Environmental Impacts of Pick-Up Points on E-Commerce Urban Last-Mile Distribution: A Case Study in São Paulo, Brazil

Online sales have steadily increased in recent years. Unlike the traditional retail shopping model, e-commerce must deliver custom orders to highly dispersed locations. Consequently, negative effects been observed large urban and densely populated areas, such as congestion pollution. Pick-up points (PPs) are fast-growing solutions that provide parcel delivery picking services at diverse locations throughout major city centers. This paper describes an optimization-based approach aimed investigate conditions which a network of pick-up can be more efficient than home deliveries from operational environmental view last-mile distribution. Differently related literature, analytical models were employed, we use optimization algorithms determine economic benefits packages destined for instead deliveries. The framework was applied São Paulo, Brazil. Several scenarios evaluated, comprising different densities percentages PPs. results show PPs promising alternative reducing externalities, fleet vehicle mileage reduced by 50%.