Abstract
Uncertainty in last-mile delivery complicates day ahead driver staffing. We propose a single-period stochastic optimization model that jointly chooses base (pre-booked) and surge (backup) capacity. The model combines the newsvendor overage / underage tradeoff, dual-sourcing cost differentiation, and exogenously specified risk-based route classes to represent heterogeneous demand. Given counts of high, medium, and low risk routes and unit costs, it computes the cost with the objective of finding the optimal numbers of pre-booked and backup drivers. An illustrative example shows how risk segmentation and dual sourcing shape the optimal mix and quantify the tradeoff between higher upfront staffing and lower shortfall exposure. We use finite convolution formulas for the distribution of total driver demand under independent per route needs, enabling efficient evaluation of expected penalties across candidate staffing plans. The model can be extended to rolling horizon and multi-period settings.
| Original language | English |
|---|---|
| Pages (from-to) | 372-379 |
| Number of pages | 8 |
| Journal | Transportation Research Procedia |
| Volume | 97 |
| DOIs | |
| State | Published - 2026 |
| Event | 13th International Conference on Transport Survey Methods, 2026 - Danang, Viet Nam Duration: 30 Mar 2025 → 4 Apr 2025 |
Bibliographical note
Publisher Copyright:Copyright © 2026. Published by Elsevier B.V.
Keywords
- Newsvendor model
- Risk-based planning
- Staff allocation
- Stochastic optimization
- Urban Last-mile delivery
ASJC Scopus subject areas
- Transportation
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