Speaker: Olivier Kwizera, Industrial Engineering, University of Arkansas.
Date: Monday, February 19th, 2018, 5:00PM-6:00PM
Location: SCEN 322
Title: Using Drones for Delivery: A Two-Level Integrated Inventory Problem with Battery Degradation and Swap Stations
Abstract: E-commerce growth is rapidly changing consumer expectations about shipping speed. As a result, companies are looking into innovative, fast, and cost-efficient ways of delivering orders. One solution to shipping packages is the use of drones. The feasibility of drone delivery depends on continuous operation of drones; one alternative enabling drones to fly for long time periods is the use of a battery swap station. A swap station enables the drone to swap a depleted battery for a fully charged battery in a matter of seconds. The battery swap station must determine when to recharge the depleted battery. However, the problem is complex because the recharge and use actions of a battery reduces the capacity; the capacity limits the battery charge which directly relates to the drone flight range. The flight range dictates which geographically diverse customers can be serviced. Thus, we consider the problem of optimally managing battery inventory by determining which batteries are charged, used, swapped, and replaced to service customers over time and space. We use a two-level integrated inventory model where the first level charge inventory actions impact the second level capacity inventory level and replacement. We provide complexity results, computational tests, and deduce policy insights.
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