Trade-offs in multi-channel delivery network design with perishable and non-perishable goods

This study focuses on optimizing last-mile delivery in e-commerce by balancing cost efficiency and customer preferences, particularly for mixed perishable and non-perishable goods distribution. As online grocery shopping grows, ensuring the timely and efficient delivery of perishable products while maintaining quality remains a critical challenge. The problem is modelled as a variant of the multi-objective Vehicle Routing Problem (VRP), where customer utility and operational costs are incorporated as two objectives. Customer utility is computed with parameters estimated using the Best-Worst Method (BWM). The multi-objective model is solved by linearizing the non-linear objectives and using a weighted sum method. The model evaluates home delivery, attended pickup points, and lockers, revealing that cost-driven strategies shift deliveries toward self-pickup, with perishable items primarily assigned to attended pickup points due to temperature control. The findings provide insights for improving delivery network design, enhancing service quality, and optimizing the distribution of both perishable and non-perishable products.