Route Planning for Last-Mile Deliveries Using Mobile Parcel Lockers: A Hybrid Q-Learning Network Approach

TL;DR

This paper introduces a Hybrid Q-Learning Network approach to optimize mobile parcel locker deployment and routing, improving efficiency and reducing costs in last-mile urban deliveries.

Contribution

It formulates the Mobile Parcel Locker Problem and develops a novel HQM method that outperforms exact and genetic algorithms in large-scale scenarios.

Findings

HQM achieves better optimization with shorter computation times.

HQM's average reward is 1.96 times greater than GA.

Efficiency depends on time window length and stopover deployment.

Abstract

Mobile parcel lockers have been recently proposed by logistics operators as a technology that could help reduce traffic congestion and operational costs in urban freight distribution. Given their ability to relocate throughout their area of deployment, they hold the potential to improve customer accessibility and convenience. In this study, we formulate the Mobile Parcel Locker Problem (MPLP) , a special case of the Location-Routing Problem (LRP) which determines the optimal stopover location for MPLs throughout the day and plans corresponding delivery routes. A Hybrid Q Learning Network based Method (HQM) is developed to resolve the computational complexity of the resulting large problem instances while escaping local optima. In addition, the HQM is integrated with global and local search mechanisms to resolve the dilemma of exploration and exploitation faced by classic reinforcement learning methods. We examine the performance of HQM under different problem sizes (up to 200 nodes) and benchmarked it against the exact approach and Genetic Algorithm (GA). Our results indicate that HQM achieves better optimisation performance with shorter computation time than the exact approach solved by the Gurobi solver in large problem instances. Additionally, the average reward obtained by HQM is 1.96 times greater than GA, which demonstrates that HQM has a better optimisation ability. Further, we identify critical factors that contribute to fleet size requirements, travel distances, and service delays. Our findings outline that the efficiency of MPLs is mainly contingent on the length of time windows and the deployment of MPL stopovers. Finally, we highlight managerial implications based on parametric analysis to provide guidance for logistics operators in the context of efficient last-mile distribution operations.