Scheduling‐location problem with drones

Abstract Drone operation, a new driving force for logistics innovation, is struggling to overcome practical challenges. One of the concerns for drone utilization is limited flight ranges, and different concepts of facilities are continually developed to support drone delivery. These new facilities prompt the need to integrate decision‐making across different phases. In particular, the deployment of facilities that complement the physical limitations of drones and the scheduling of drones to perform delivery tasks are closely related. Therefore, we developed a scheduling‐location problem with drones, a new methodology for integrating operational and strategic planning decisions. The integrated decision‐making determines the location of the drone facilities by not only considering the critical distance of facilities but also by taking into account whether the delivery schedule is implemented. In our model, additional drone facilities are sometimes opened considering available drones due to the feasibility of the delivery schedule. An extended formulation and a restricted master heuristic are proposed to solve problems time‐efficiently. Computational results show that the restricted master heuristic outperforms the mathematical model in finding solutions for large‐scale instances. The developed model and heuristic algorithm provide drone delivery services even in areas that are not easily reachable by drones due to being located far from the warehouse and can be effectively applied to humanitarian logistics.