Linear Program and Simulation Model for Aerial Package Delivery: A Case Study of Amazon Prime Air in Phoenix, AZ

摘要

Amazon Inc. is currently the world's largest online retailer. Their distribution and logistics network continues to grow exponentially. To better serve their customers, they have proposed utilizing drone delivery as a mode to move packages from supply centers to customer doorsteps. The perceived benefits would include faster delivery fulfillment, reduction in time from order to delivery, streamlining the logistics chain, and lower shipping costs for Amazon. There are issues to address in order for this to be a viable solution such as FAA regulations, flight-time, peak and non-peak utilization, safety, and operating costs to name a few. This research analyzed how a model of air-based delivery system can be implemented in order to maximize Amazon's profit and how variability in consumer demand can affect deliveries.