Modelling and Optimization of Simultaneous Froward- and Reverse Logistics as Capacitated Vehicle Routing Problem An optimization simulation model problem

Environmental issues are a vital concern in today’s world. The Swedish government and local businesses are developing a sustainable business and eco-friendly environment for city inhabitants. Last-mile pickup and delivery services are a key concern, which significantly impacts the environment and society. The Norwegian/Swedish parcel delivery company Bring, the reusable waste management company Ragn-Sells, the city of Stockholm, the research institute Sustainable Innovation, and the KTH Royal Institute of Technology are jointly working together in the Intercitylog2 project with a vision to handle better last-mile pickups or deliveries that are jointly serviced by small electric vehicles from an urban micro terminal. This thesis addresses the optimizations of simultaneous pickup and delivery operations using homogeneous vehicles and considering vehicle capacity, time windows and environmental constraints. A mathematical model is developed to address the problem using an exact commercial solver. The quality of the solutions has been evaluated with real pickup and deliveries of the participating company. The primary objective function is formulated to minimize the travel cost by finding the shortest path, and the results are compared with current routing operation data. KPIs are developed and evaluated based on the facts and figures from the obtained results of the experiments. The two scenarios, big vehicles and small vehicles, are also developed and evaluated to find the best route optimization opportunity for the companies. The results show that the optimized operation could decrease delivery distance by 36.72% and 37.13% and delivery time by 43.65% and 47.08% for big and small vehicles operations, respectively, compared to the current routing operations. A round trip can complete within a defined time frame to avoid the battery running out during a route. Energy constraints demonstrate that using electric vehicles considerably reduce significant amounts of CO2 emission from the environment