Design and modeling of a crowdsource-enabled system for urban parcel relay and delivery

- We propose a crowdsource-enabled system for urban parcel relay and delivery.
- Crowdsources undertake jobs for the last-leg delivery and the first-leg pickup.
- Truck carrier selects crowdsource bids and coordinate crowdsources' jobs with its own truck operations.
- A tailored Tabu Search based algorithm is developed to solve the system design problem.
- The new design reduces truck vehicle miles traveled (VMT) and total cost.

This paper proposes a crowdsource-enabled system for urban parcel relay and delivery. We consider cyclists and pedestrians as crowdsources who are close to customers and interested in relaying parcels with a truck carrier and undertaking jobs for the last-leg parcel delivery and the first-leg parcel pickup. The crowdsources express their interests in doing so by submitting bids to the truck carrier. The truck carrier then selects bids and coordinates crowdsources' last-leg delivery (first-leg pickup) with its truck operations. The truck carrier's problem is formulated as a mixed integer non-linear program which simultaneously i) selects crowdsources to complete the last-leg delivery (first-leg pickup) between customers and selected points for crowdsource-truck relay; and ii) determines the relay points and truck routes and schedule. To solve the truck carrier problem, we first decompose the problem into a winner determination problem and a simultaneous pickup and delivery problem with soft time windows, and propose a Tabu Search based algorithm to iteratively solve the two subproblems. Numerical results show that this solution approach is able to yield close-to-optimum solutions with much less time than using off-the-shelf solvers. By adopting this new system, truck vehicle miles traveled (VMT) and total cost can be reduced compared to pure-truck delivery. The advantage of the system over pure-truck delivery is sensitive to factors such as penalty for servicing outside customers' desired time windows, truck unit operating cost, time value of crowdsources, and the crowdsource mode.