A time-driven simulation–optimization framework for the dynamic heterogeneous order-courier assignment problem for instant deliveries

Abstract

• A time-driven simulation–optimization framework is developed for instant deliveries. • Simulation is applied to represent the entire system. • Optimization is applied to achieve the optimal assignment of couriers to orders. • The assignment problem is extended to address order-courier restrictions. • Effectiveness is demonstrated on literature instances and a realistic case study. In recent years, instant delivery services have become very popular for transporting meals to urban areas, with an extensive range of products now available to order. The platforms that offer these services rely on crowdsourced couriers who utilize their personal vehicles, resulting in heterogeneous fleets. Furthermore, the competition among companies to retain both customers and couriers is very intense, which underscores the importance of developing superior decision support systems. These systems must generate real-time assignments that meet the expectations of service providers, customers, and couriers. In this study, we designed a time-driven simulation–optimization framework that addresses the dynamic heterogeneous order-courier assignment problem and incorporates order-vehicle restrictions. The framework efficiently manages real-time order arrivals, courier movements, and positional updates while considering dynamic factors such as traffic congestion and regional speed limits for various vehicle types. Extensive testing using literature instances demonstrated the framework’s ability to satisfactorily address the defined problem. Additionally, the time-driven simulation–optimization framework was applied to a realistic case study, resulting in an approximately 4.5% reduction in the total delivery times (from the submission of the order until the delivery to the client) for all orders when compared to the original assignment.

Topics & Concepts