Solution approaches for combining first-mile pickup and last-mile delivery in an e-commerce logistic network: A systematic literature review

Abstract

Logistics is one of the primary areas of operation within cutting-edge supply chain operations. In the e-commerce supply chain also logistics operations play a vital part. The logistics operations must be controlled effectively and efficiently since they deal with the high-cost besides environmental impacts. In e-commerce logistics operations, first-mile and last-mile delivery operations are considered as the operations with the highest costs incurred. So, e-commerce service providers are interested in optimizing their first-mile and last-mile delivery operations. Though it is known that the integration of first-mile pickup and last-mile deliveries will minimize the cost of transportation, there are more practical concerns to be taken into account when combining the first-mile pickup and last-mile delivery operations. Capacitated Vehicle Routing Problem (CVRP) is discussed in the literature as a solution approach for this kind of problems. The objective of this study is to provide a comprehensive overview of the current CVRP related literature, including models, algorithmic solution approaches, objectives, and industrial applications, with a focus of identifying interesting study paths for the future to improve distribution in e-commerce logistics networks by combining first-mile pickup and last-mile delivery operations. The findings of the study have demonstrated that constraints and features of Vehicle Routing Problem with Backhauls are very attractive with today's e-commerce operations, and the majority of the cited publications employed approximation methods rather than precise algorithms to solve these types of models.