Capacitated Vehicle Routing Problem with Delivery Options: Private or Shared Location

Last-mile delivery costs are increasingly growing due to the rapid growth in E-commerce and proliferation of online shopping especially after COVID-19 crisis. Integrating shared location systems with home has been a new trend tackling last mile challenges. This paper studies Capacitated Vehicle Routing Problem Delivery Options (CVRPDO). In this problem, customers can choose between picking up their requests from or receiving them at homes within preferred time window. The problem is formulated mathematically minimize total considering customers’ preferences. Results include comparisons standard (CVRP) those CVRPDO. demonstrate that CVRPDO outperforms CVRP by considerable margin for varied-size instances providing justification substantial investment establishing locations delivery.