Optimised solutions to the last-mile delivery problem in London using a combination of walking and driving

Inspired by actual parcel delivery operations in London, this paper describes a two-echelon distribution system that combines the use of driving and walking as part of last-mile deliveries in urban areas for a single driver. The paper presents an optimisation model that explicitly treats and integrates the driving and walking elements, and describes a branch-and-cut algorithm that uses new valid inequalities specifically tailored for the problem at hand. Computational results based on real instances obtained from a courier operating in London are presented to show the performance of the algorithm.