Optimising Parcel Deliveries in London Using Dual-Mode Routing

Last-mile delivery operations are complex, and the conventional way of using a single mode of delivery (e.g. driving) is not necessarily an efficient strategy. This paper describes a two-level parcel distribution model that combines walking and driving for a single driver. The model aims to minimise the total travelling time by scheduling a vehicle's routing and the driver's walking sequence when making deliveries, taking decisions on parking locations into consideration. The model is a variant of the Clustered Travelling Salesman Problem with Time Windows, in which the sequence of visits within each cluster is required to form a closed tour. When applied to a case study of an actual vehicle round from a parcel carrier operating in London, savings of over 20% in the total operation time were returned over the current situation where 104 transactions from 99 consignees were being delivered to 57 stopping points