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An Intelligent Neural Network Framework for Multi-Company Last-Mile Delivery: Joint Time–Cost Optimization with LSTM Forecasting and Reinforcement Learning Routing

Habib Muhammad Jidda, Etemi Joshua Garba, Bawa Mohammed Garba, Habib, Muhammad Jidda, Etemi, Joshua Garba, Bawa, Mohammed Garba

Abstract

In the context of escalating e-commerce demands, last-mile delivery in multi-company logistics environments faces challenges from urban congestion, fragmented operations, and real-time uncertainties, often accounting for over 50% of total supply chain costs. This paper presents a comprehensive neural network framework that integrates Long Short-Term Memory networks for accurate estimated time of arrival forecasting with a reinforcement learning (RL)-based routing engine to achieve joint optimization of delivery time and operational costs across collaborating firms. The modular architecture incorporates a collaboration-aware platform layer that facilitates shared fleet utilization and overlapping zone coordination, processing inputs from logistics databases, real-time traffic APIs, and weather services to enable adaptive decision-making. Theoretical contributions include a Markov Decision Process formulation for multi-agent routing under stochastic constraints, LSTM gating mechanisms enhanced for non-stationary temporal sequences, and a reward function that balances time penalties, fuel costs, and collaboration incentives via weighted multi-objective optimization. Simulations on the Lagos delivery datasets demonstrate 12-15% reductions in joint time-cost metrics compared to baseline heuristics, with robustness to peak-hour volatility. The framework addresses key gaps in existing single-firm, static models by enabling scalable, privacy-preserving multi-stakeholder integration, paving the way for sustainable intelligent transportation systems in dense cities.

Keywords

Last-mile deliverymulti-company logisticsLong Short-Term Memoryroute optimizationMarkov Decision Process.

References

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