Transportation Cost Optimization Approach for Last Mile Logistics with Time Window

Abstract

The main reason for failed deliveries is the customers absence at home, and it forces delivery service providers to respond to high transportation costs with the re-delivery. This research focuses on the development of last mile logistic service with narrow time window to provide higher customer service and efficiency for smart logistics. The objective of this research is to reduce the redelivery cost to be able minimize the total transportation cost in each pattern of customers area from benchmark problem implemented by a mathematical model as Vehicle Routing Problem with Time Window.