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Does Parking Matter? The Impact of Search Time for Parking on Last-Mile Delivery Optimization

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 Added by Sara Reed
 Publication date 2021
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and research's language is English




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Parking is a necessary component of traditional last-mile delivery practices, but finding parking can be difficult. Yet, the routing literature largely does not account for the need to find parking. In this paper, we address this challenge of finding parking through the Capacitated Delivery Problem with Parking (CDPP). Unlike other models in the literature, the CDPP accounts for the search time for parking in the objective and minimizes the completion time of the delivery tour. We provide tight bounds for the CDPP using a Traveling Salesman Problem (TSP) solution that parks at each customer. We then demonstrate the circumstances under which this TSP solution is the optimal solution to the CDPP as well as counterexamples to show that the TSP is generally not optimal. We also identify model improvements that allow reasonably-sized instances of the CDPP to be solved exactly. We introduce a heuristic for the CDPP that quickly finds high quality solutions to large instances. Computational experiments show that parking matters in last-mile delivery optimization. The CDPP outperforms industry practice and models in the literature showing the greatest advantage when the search time for parking is high. This analysis provides immediate ways to improve routing in last-mile delivery.

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We propose a game theoretic approach to address the problem of searching for available parking spots in a parking lot and picking the ``optimal one to park. The approach exploits limited information provided by the parking lot, i.e., its layout and the current number of cars in it. Considering the fact that such information is or can be easily made available for many structured parking lots, the proposed approach can be applicable without requiring major updates to existing parking facilities. For large parking lots, a sampling-based strategy is integrated with the proposed approach to overcome the associated computational challenge. The proposed approach is compared against a state-of-the-art heuristic-based parking spot search strategy in the literature through simulation studies and demonstrates its advantage in terms of achieving lower cost function values.
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