Joint Ground and Aerial Package Delivery Services: A Stochastic Optimization Approach

Abstract

Unmanned aerial vehicles, also known as drones, have emerged as a promising mode of fast, energy-efficient, and cost-effective package delivery. A considerable number of works have studied different aspects of drone package delivery service by a supplier, one of which is delivery planning. However, existing works addressing the planning issues consider a simple case of perfect delivery without service interruption, e.g., due to accident, which is common and realistic. Therefore, this paper introduces the joint ground and aerial delivery service optimization and planning (GADOP) framework. The framework explicitly incorporates uncertainty of drone package delivery, i.e., takeoff and breakdown conditions. The GADOP framework aims to minimize the total delivery cost, given practical constraints, e.g., travelling distance limit. Specifically, we formulate the GADOP framework as a three-stage stochastic integer programming model. To deal with the high complexity issue of the problem, a decomposition method is adopted. Then, the performance of the GADOP framework is evaluated by using two data sets including the Solomon benchmark suite and the real data from one of the Singapore logistics companies. The performance evaluation clearly shows that the GADOP framework can achieve significantly lower total payment than that of the baseline methods, which do not take uncertainty into account.