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Staffing planning for last-mile delivery drivers is the process of planning the number of drivers that are required each week to deliver all the expected volume for a pre-determined time horizon, with the ability to adjust the decisions over time under guardrails restrictions. We formulate the problem as a multi-dimensional stochastic dynamic program with a newsvendor-based cost function and propose an approximation algorithm that can solve the problem to near optimality in tractable time.
Courier Dedication vs. Sharing in On-Demand Delivery
Arseniy Gorbushin1, Ming Hu1, Yun Zhou2
1Rotman School of Management, Canada; 2DeGroote School of Business
The food delivery market migrates to platforms that allow optimizing courier routing by sharing couriers among many restaurants. We address the question: how does courier sharing contribute to the reduction of delivery costs? We consider a spatial queuing model in which couriers are servers. We show that in several scenarios dedicated courier policy achieves higher profit than a sharing policy. This result can be attributed to the imbalance in the courtier allocation that sharing creates.
The whiplash effect: congestion dissipation and mitigation in a circulatory transportation system
Chaoyu Zhang, Ming Hu
University of Toronto, Canada
The pandemic era experienced a significant amount of port congestion. Such congestion at one port spreads to another, leading to shipping delays and driving up costs for shippers. In this paper, we build an analytical fluid model to study how a disruption at a port would impact a disrupted port in one country and its counterpart port in another country.