Promoting cost efficiency and uniformity in parcel delivery centre locations and service areas: a GIS-based analysis

ABSTRACT

This paper provides a systematic framework to determine local delivery centre (LDC) locations and service areas to reduce delivery costs and balance the allocation of parcel delivery loads to promote sustainable LDC development. Based on a case study of a parcel distribution company in Korea, this study proposes two strategies for LDC service area delineation within each terminal service boundary that either minimises the total delivery time or balances the allocation of delivery loads. This research contributes to improving cost efficiency and balancing delivery load allocations in planning LDC locations and service areas that can potentially promote the long-term mutual sustainable development of parcel distribution companies and their local delivery counterparts.

KEYWORDS:

• Parcel delivery
• location modelling
• regional partitioning
• Geographic Information System

Disclosure statement

No potential conflict of interest was reported by the authors.