Optimization model for designing reliable supply chain network using drones in last-mile delivery under uncertainties

Abstract Land transportation is generally considered one of the most expensive, polluting and least efficient parts of the logistics chain. Due to these issues, using unmanned aerial vehicles such as drones for package delivery in last-mile logistics becomes increasingly attractive. However, there are several significant obstacles in terms of technical aspects and performance capabilities of drones like limited flight coverage. In addition, supply chains are exposed to a broad range of uncertainties some of which may cause disruptions in the whole supply chain system. To hedge against these issues, a well-designed reliable network is a top priority. This research aims to construct a feasible delivery network consisting of warehouses and recharging stations through the development of a stochastic mixed-integer model, resulting in improving the coverage and reliability of the supply chain network. Due to the computational complexity of the scenario-based mixed-integer model, this research improves the performance of the genetic algorithm by considering each scenario independently in one of the steps of the algorithm to significantly improve the computational time need to find the solutions. Computational results demonstrate that the proposed algorithm is efficiently capable of solving large-scale problems. It is also demonstrated that substantial improvements in the reliability of the system can often be possible with minimal increases in facility cost.