Location flexibility in parcel delivery operations: framework and empirical analysis

Abstract In traditional parcel delivery operations, customers determine locations and, hence, the performance of a transporter. We exploit this idea and show that can improve efficiency transporter by giving latter flexibility in choosing locations. Two possible policies to enable are presented evaluated. The first policy, conceptually similar roaming vehicle routing, is related presence alternative second policy possibility aggregating/skipping some route optimization behind both be modelled via well-known generalized travelling salesman problem. Extensive computational experiments with real data performed evaluate potential obtain insights for implementation daily practice. under certain conditions, two proposed lead 15 20% improvement length extreme yet realistic cases up 40 50%. Consequently, concept flexible has practice, especially densely populated areas.