Time Slot Management in Attended Home Delivery

Agatz, Niels; Campbell, Ann Melissa; Fleischmann, Moritz; Savelsbergh, Martin

doi:10.1287/trsc.1100.0346

Cited by 192 publications

(122 citation statements)

References 21 publications

(22 reference statements)

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“…Furthermore, the delivery cost approximation in our model is dynamic and not fixed as in Asdemir et al (2009). Agatz et al (2011) address the issue of geographic dependence of the attended home delivery problem. Their approach is related to ours in that they also use the work of Daganzo (1987) to obtain a continuous delivery cost approximation.…”

Section: Literature Reviewmentioning

confidence: 99%

An approximate dynamic programming approach to attended home delivery management

Yang

Strauss

2017

European Journal of Operational Research

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We propose a new method of controlling demand via delivery time slot pricing in attended home delivery management. The focus is on development of an approach that is suitable for industry-scale implementation. To that end, we exploit a relatively simple yet effective way of approximating the delivery cost by decomposing the overall delivery problem into a collection of smaller, area-specific problems. This cost estimation serves as an input to an approximate dynamic programming method which provides estimates of the opportunity cost associated with having a customer from a specific area book delivery in a specific time slot. These estimates depend on the area and on the delivery time slot under consideration.Using real, large-scale industry data, we estimate a demand model including a multinominal logit model of the customers' delivery time slot choice, and show in simulation studies that we can improve profits by over 2% in all tested instances relative to using a fixed price policy that is commonly encountered in e-commerce. These improvements are achieved despite having made strong assumptions in the delivery cost estimation. These assumptions allow us to reduce computational runtime to a degree suitable for real-time decision making on delivery time slot feasibility and pricing. Our approach provides quantitative insight to the importance of incorporating expected future order displacement cost into the opportunity cost estimation alongside marginal delivery costs.

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Section: Literature Reviewmentioning

confidence: 99%

An approximate dynamic programming approach to attended home delivery management

Yang

Strauss

2017

European Journal of Operational Research

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“…The latter is also studied as time slot management problem (Agatz et al, 2011). Reliability and width of the time windows -slots -strongly impact on the results of routing optimization as well as on customer's experience.…”

Section: E-grocery Home Deliverymentioning

confidence: 99%

Using customer-related data to enhance e-grocery home delivery

Pan

Giannikas

Han

et al. 2017

IMDS

112

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Purpose -The development of e-grocery allows people to purchase food online and benefit from home delivery service. Nevertheless, a high rate of failed deliveries due to the customer's absence causes significant loss of logistics efficiency, especially for perishable food. The purpose of this paper is to propose an innovative approach to use customer-related data to optimize e-grocery home delivery. The approach estimates the absence probability of a customer by mining electricity consumption data, in order to improve the success rate of delivery and optimize transportation. Design/methodology/approach -The methodological approach consists of two stages: a data mining stage that estimates absence probabilities, and an optimization stage to optimize transportation. Findings -Computational experiments reveal that the proposed approach could reduce the total travel distance by 3-20 percent, and theoretically increase the success rate of first-round delivery approximately by18-26 percent.Research limitations/implications -The proposed approach combines two attractive research streams on data mining and transportation planning to provide a solution for e-commerce logistics. Practical implications -This study gives an insight to e-grocery retailers and carriers on how to use customer-related data to improve home delivery effectiveness and efficiency. Social implications -The proposed approach can be used to reduce environmental footprint generated by freight distribution in a city, and to improve customers' experience on online shopping. Originality/value -Being an experimental study, this work demonstrates the effectiveness of data-driven innovative solutions to e-grocery home delivery problem. The paper also provides a methodological approach to this line of research. The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/0263-5577.htm IntroductionRecent developments of e-commerce have had a significant impact on food supply chains. Today, many traditional grocery retailers offer their customers the opportunity to purchase food items online and have them deliv...

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“…Another research stream focuses on the delivery service for online orders. For instance, the time slot management problem were addressed in the study provided by Agatz et al [32], whereas [33] assessed the impact of the delivery window length on distribution performance (i.e., cost and service level). However, these studies adopted a single channel perspective.…”

Section: Research Backgroundmentioning

confidence: 99%

A Critical Comparison of Alternative Distribution Configurations in Omni-Channel Retailing in Terms of Cost and Greenhouse Gas Emissions

Tappia

2018

Sustainability

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New opportunities and challenges forced by the ever-increasing importance of the online channel have arisen for retailers. The retailing industry is moving to a new phase, in which the distinctions between traditional and online channels disappear, namely omni-channel (OC) retailing. At the same time, the awareness of environmentally sustainable processes has been enhanced around the world and the environmental impact that results from the online order fulfilment process is becoming a key issue for logistics managers. The new challenge is to understand how multiple channels can be synergistically managed to provide a seamless customer experience, taking an economic and environmental perspective simultaneously. Retailers need to define the distribution configuration for serving the online demand, making decisions on the integration level between online and traditional channels. In this paper, we developed an assessment model of the operational costs and greenhouse gas emissions for three distribution configurations in OC retailing. The model was also applied to a real case operating in the consumer electronics industry. Results highlighted that the search for synergies between online and traditional flows in both warehouse and transport activities is a key factor for the economic and environmental sustainability of OC systems.

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Time Slot Management in Attended Home Delivery

Cited by 192 publications

References 21 publications

An approximate dynamic programming approach to attended home delivery management

An approximate dynamic programming approach to attended home delivery management

Using customer-related data to enhance e-grocery home delivery

A Critical Comparison of Alternative Distribution Configurations in Omni-Channel Retailing in Terms of Cost and Greenhouse Gas Emissions

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