Innovative Uses of Drones for Logistics in Healthcare and Production 
Alice E. Smith
1,2
 
1
Department of Industrial and Systems Engineering, Auburn University, AL 36849, U.S.A. 
2
Department of Computer Science and Software Engineering, Auburn University, AL 36849, U.S.A. 
This ICORES 2024 keynote seminar discusses novel 
approaches  for  employing  drones  to  accomplish 
logistical  tasks  in  diverse  environments.    Drones, 
working  in  tandem  with  traditional  transportation 
vehicles  and  with  humans,  offer  environmentally 
friendly  and  cost-effective  alternatives  for  moving 
small items such as medicines, electronic devices, and 
assembly  parts.    This  talk  will  cover  two  research 
projects  which  involve  a  combination  of 
mathematical modeling, computational optimization, 
simulation  in  virtual  environments,  and  actual 
physical  experimentation  and  trials.    While  using 
drones has challenges in terms of human interaction 
and practicality of operating in certain environments, 
they are more pragmatic than might be expected for 
some  situations.    One  focus  is  on  rural  last  mile 
healthcare  supplies  delivery  where  drones  resupply 
trucks  with  newly  available  medical  supply  orders 
and  prescriptions.    Another  focus  is  on  production 
assembly facilities  where drones  bring needed parts 
to  workers  at  their  stations  on  the  line.    This  latter 
setting is indoors where GPS cannot be used for drone 
positioning and guidance so alternative methods must 
be employed.  
The  first  part  of  the  talk  addresses  last-mile 
logistics systems  where drones  can be  used to  send 
newly arrived orders to delivery trucks while en route, 
allowing  the  trucks  to  continue  their  distribution 
without needing  to  return to  the  depot  periodically. 
We  begin  by  studying  the  situation  where  last-mile 
logistics operators know the order ready times when 
planning  the  day's  operations.  Using  mixed-integer 
linear  programs  and  effective,  decomposition-based 
solution  approaches  to  define  truck  routes, 
synchronized  with  drone  resupply,  the  completion 
time of the delivery process is minimized. Compared 
to a traditional truck-only scenario, where trucks must 
return to the depot to collect any newly arrived orders, 
we  show  that  drone  resupply  reduces  completion 
times and also the number of truck return trips to the 
depot under various problem settings. 
We  then  consider  the  more  complex  situation 
where  orders  arrive  dynamically  throughout  the 
delivery  horizon  and  the  decision  maker  must 
determine, in real time, whether to accept them and 
how  to  adjust  the  ongoing  distribution  plan.  We 
develop a Markov Decision Process and an efficient 
online  policy  to  dynamically  route  a  truck  that  can 
receive  newly  arrived  orders  along  its  route  via 
drones dispatched from a depot. We show that drone 
resupply increases order fill rates by as much as 20% 
compared  to  a  conventional  truck-only  resupply 
system. Computational times to make each decision 
are in the hundredths of a second, thus allowing real-
time feedback to customers regarding their eligibility 
for same-day delivery. 
Complementing  this  analytic  work,  we 
demonstrate through an animated simulation and an 
actual  proof  of  concept  physical  trial  how  this 
approach  will  work  in  practice.    Pragmatic 
considerations will also be briefly discussed.  Along 
with improved  efficiency of  operations, drone  have 
considerable  environmental  benefits  in  terms  of 
reduced emissions and a reduction in road traffic. 
The  second  part  of  the  talk  focuses  on  the 
automation  of  material  handling  in  production 
facilities using drone assist.  Automation has served 
as a fundamental catalyst in the evolution of logistics 
chains.  However,  amid  labor  shortages  and  higher 
land prices in the post-pandemic world, it is necessary 
to now make the next technological leap. Automated 
material  handling  systems  are  usually  sizeable  and 
require  processes  built  around  them,  but  with  mass 
customization as a key component, Industry 5.0 needs 
a  cost-effective,  flexible,  highly  scalable,  and  low-
footprint  material  handling  system  to  meet  future 
demand.  Uncrewed  aerial  vehicles  (UAVs),  i.e., 
drones, can fill the role of a viable alternative to more 
traditional  material  handling  systems.    They  are 
affordable,  do  not  need  significant  investments  in 
infrastructure,  can  change  routes  dynamically,  and 
have been used successfully in swarm configurations.  
Our  research  involves  the  development  and 
application of mathematical models to schedule and 
route  drones  in  3D  space  to  aid  in  material 
replenishment tasks.  In this approach, we use a 
version  of  the  capacitated  vehicle  routing  problem 
(CVRP),  with  a  discretized  representation  of  a