Multi-Location Assortment Optimization with Drone and Human Courier Joint Delivery

This paper studies the constrained multi-location assortment optimization problem under joint delivery by drone and human courier. To maximize revenue of retailer, product last-mile methods are configured simultaneously. handle with assortment, a mixed multinomial logit model is established to depict customer purchase behavior. We also take into account load capacity drones distance limit couriers. best our knowledge, present first study considering The formulated as mixed-integer linear programming (MILP) model, which then transformed conic quadratic McCormick inequalities (Conic + MC). In numerical study, it demonstrated that Conic MC outperforms MILP finds optimal solution within 300 s, while needs more than 600 s. Furthermore, several management insights revealed for retailers regarding planning when facing different kinds structures, advice provided online ordering platforms in terms setting limits.