A multicommodity pickup and delivery problem with time windows and handling time in the omni-channel last-mile delivery

This paper investigates the vehicle routing problem faced by a third-party logistics (3PL) provider that performs the last-mile delivery service in omni-channel retailing for a number of companies engaged in household appliances and furniture. In the problem, each company is associated with a set of warehouses, physical stores, and customers that provide or require various commodities. The request of a company is to transport commodities from the selected warehouses and stores to the customers. In addition, the pickup or delivery service at each location should be started in a predefined time window. Since the loading and unloading follow the last-in-first-out fashion, the handling time incurred by additional operation is considered. The studied problem is formulated as a multicommodity pickup and delivery problem with time windows and handling time (MPDPTWH). MPDPTWH aims to satisfy the requests on the 3PL platform with the minimum total duration of the routes. We present a mixed integer programming formulation of the problem and propose a multirestart randomized tabu thresholding algorithm (MRTTA) as well as a memetic algorithm (MA) to solve this problem heuristically. Then, the performance of the mathematical model and the two heuristics is assessed over three sets of MPDPTWH instances. After this, we compare the proposed MRTTA and MA with algorithms from the literature on a related problem. Furthermore, we perform the sensitivity analysis in a case study by discussing the impact of picking cost and handling time on the solution, and give the managerial insights.