A Deep Reinforcement Learning Approach for Constrained Online Logistics Route Assignment

As online shopping prevails and e-commerce platforms emerge, there is a tremendous number of parcels being transported every day. Thus, it is crucial for the logistics industry on how to assign a candidate logistics route for each shipping parcel properly as it leaves a significant impact on the total logistics cost optimization and business constraints satisfaction such as transit hub capacity and delivery proportion of delivery providers. This online route-assignment problem can be viewed as a constrained online decision-making problem. Notably, the large amount (beyond ${10^5}$) of daily parcels, the variability and non-Markovian characteristics of parcel information impose difficulties on attaining (near-) optimal solution without violating constraints excessively. In this paper, we develop a model-free DRL approach named PPO-RA, in which Proximal Policy Optimization (PPO) is improved with dedicated techniques to address the challenges for route assignment (RA). The actor and critic networks use attention mechanism and parameter sharing to accommodate each incoming parcel with varying numbers and identities of candidate routes, without modeling non-Markovian parcel arriving dynamics since we make assumption of i.i.d. parcel arrival. We use recorded delivery parcel data to evaluate the performance of PPO-RA by comparing it with widely-used baselines via simulation. The results show the capability of the proposed approach to achieve considerable cost savings while satisfying most constraints.