Authors

Abstract

Drone delivery is widely-researched to alter the current e-commerce delivery convention for providing short delivery lead times. Yet, flight range of drones, constrained by the available battery technology, sets a milestone toward realizing the sole-drone delivery. To tackle with the flight range limitation, locating automated battery swapping machines (ABSM) have been proposed and a few studies modeled the problem. Using the ABSMs, drones can be loaded with fully-charged batteries along the route to a demand location. In this study, we introduce a mixed-integer nonlinear program to model the problem. The objective of the program is to optimally select ABSM locations, determine the delivery-mode choices (drone-only, truck-only, and mixed delivery) of demand locations, find drone delivery routes, and approximate the baseline requirements for the number of drones and batteries needed. The program minimizes the overall delivery system costs including: ABSM, delivery, drone ownership, battery inventory, and service congestion. A cutting-plane method is developed to find exact solutions in finite iterations. Computational experiments showed that the method quickly yields the optimal solution to instances with less than 60 ABSM candidates and 20 demand locations. A case study shows that the optimal drone delivery infrastructure can save almost 20% cost compared to the conventional truck-only delivery. Sensitivity analyses were conducted to reveal the impact of key parameters in the decision-making and found that a decrease in the ABSM and drone costs highly affect the system cost.