Track: Undergraduate Student Paper Competition

Abstract

The paper presents a research project where the profitability of incorporating Light Electric Vehicles (LEV) into last-mile distribution systems is evaluated, seeking to meet three particular objectives: (1) determine the benefits in terms of cost, of incorporating LEVs in  in the distribution of dry chain products, (2) determine the benefits in terms of cost, of incorporating LEVs in the distribution of mail packages, and (3) identify if such benefits are consistent along different scenarios of a distribution network. The research project is based on the need to promote the insertion of more eco-friendly distribution vehicles in the last-mile distribution operations, and direct data from a pilot test on the subject carried out by the Colombian research company Logyca®, based in Bogotá. This study carries out in-depth research on the subject, through an SLR, thoroughly exploring the mathematical optimization models that have been developed around the world trying to incorporate LEV into logistics distribution models to, eventually, identify the need for documentation of the building process of a model that minimizes operating costs. A sensitivity analysis is performed through the analysis of a designed experiment, which studies different conditions of last-mile distribution networks. Results show a reduction in costs of about 50% by the replacement of conventional trucks with a combination of e-bikes and e-trikes.