Optimizing Last-Mile Delivery of Perishable Goods Using a Bin Packing Model: A Case Study

The rapid evolution of digital commerce and rising consumer expectations have significantly impacted supply chain design, particularly in urban logistics involving perishable goods. This study investigates the application of a mathematical optimization model, the Variable Cost and Size Bin Packing Problem with Time Dependent Costs (VCSBPP-TD), to improve last-mile delivery efficiency in the Malaysian bakery industry. The model, originally developed for nonperishable parcel deliveries in urban areas, is adapted to address the challenges specific to perishable products context in Penang, Malaysia. Unlike two-echelon systems with satellite depots, Penang’s bread distribution primarily involves direct dispatch from small bakeries using constrained vehicle fleets and serving localized customers. The study finds that the current delivery setup typically requires the entire day to complete all deliveries. By implementing the VCSBPP-TD-based optimization, the model identified opportunities to reduce operational costs, primarily by optimizing vehicle usage, resulting in some vehicles remaining unused without compromising delivery coverage. At the same time, the model can indirectly optimize the resource utilization and workforce. These results suggest that even in a simplified logistical structure, the model can support more efficient resource allocation and timely delivery. This research contributes to the growing literature on adapting advanced optimization techniques to perishable last-mile logistics in developing urban environments.