Parcel Locker Location Based on a Bilevel Programming Model

Abstract

In order to improve delivery network efficiency and to solve consumer satisfaction problems, parcel locker location optimisation scheme is proposed based on the delivery demand under the e-commerce environment. In this paper, a bilevel programming (BLP) model is established to identify the optimal location for parcel lockers by considering benefits of consumers and logistics planning departments. The upper-level model is to determine the optimal location by minimising the planners’ cost, and the lower one gives an equilibrium demand distribution by minimising the consumers’ pick-up cost. On the special form of constraints, a bilevel genetic algorithm is proposed based on GIS data and a genetic algorithm. Finally, a numerical example is employed to demonstrate the application of the method, which indicates that the model can solve the problem of parcel locker location.