Vehicle routing problem in omni-channel retailing distribution systems

Abdulkader, M.M.S.; Gajpal, Yuvraj; ElMekkawy, Tarek Y.

doi:10.1016/j.ijpe.2017.11.011

Cited by 52 publications

(50 citation statements)

References 45 publications

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“…Table 3 shows the amount of decision variables -items shipped among points considering different scenarios. Tables 2 and 3 about here. Results of the model proposed by Abdulkader et al [21] follow the same trend but with higher costs. The values of the first objective functions (i.e.…”

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confidence: 57%

“…The values of the first objective functions (i.e. cost components) for the same scenario are higher in the model proposed by Abdulkader et al [21]. As shown in Figure 3, the proposed model results in lower holding cost than that of Abdulkader et al [21] for all of the investigated scenarios.…”

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confidence: 72%

“…Abdulkader et al [21], introduced a vehicle routing problem in which groups of retail stores are responded by a distribution center and a fleet of vehicles based on Omni-channel concept. Their mentioned problem is a generalization of Picking up and delivery problem and capacitated vehicle routing problem.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In today's chaotic business world a company will be successful if it can use all communication channels to satisfy customers' demands and wishes in a short period of time and at any time and place [20]. With the new purchasing methods, customers can purchase 24 hours, seven days a week [21]. In this method, customer can search for and order product at any place and through any means (i.e.…”

Section: Introduction Of the Internet To The Business World Offered Nmentioning

confidence: 99%

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A Combined Benders Decomposition and Lagrangian Relaxation Algorithm for Optimizing a Multi-Product, Multi-Level Omni-Channel Distribution System

et al. 2020

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The development of supply chain distribution systems from single-to multi-channel networks for delivering items to end customers has effected many changes in the retail sector. Following the adoption of multi-channel distribution strategies and rapid development of relevant technologies, the Omni-channel approach can yield significant benefits and facilitate trade with customers. This paper aims to optimize a multi-product, multi-level Omni-channel distribution network and shipping flows of products within the network under uncertain conditions. A multi-objective mathematical model is developed that minimizes the costs of supply chain while maximizing customer satisfaction over different scenarios. In order to solve the proposed model, a combined algorithm is developed based on Benders Decomposition (BD) and Lagrangian Relaxation (LR). The presented model and solution approach is implemented in a case study of a distribution system, a large e-commerce startup and online store. Five different scenarios with various service levels are investigated and the numerical results are discussed compared to previous findings. The efficiency of the proposed combined BD-LR solution algorithm is also demonstrated. The results obtained from the case study show that higher service levels are correlated with higher levels of customer satisfaction and lower cost of the system.

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confidence: 57%

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confidence: 72%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introduction Of the Internet To The Business World Offered Nmentioning

confidence: 99%

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A Combined Benders Decomposition and Lagrangian Relaxation Algorithm for Optimizing a Multi-Product, Multi-Level Omni-Channel Distribution System

et al. 2020

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“…Over the last few years, 'Omnichannel' has become a buzzword in the retailing world. Omnichannel promises to offer an integrated view of the services offered by online and offline channels so that a customer can interchangeably, and seamlessly use services of both the channels to enhance her shopping experience during various stages of a purchase processresearch, purchase, delivery, and post-purchase services (Abdulkader et al, 2018;Rey-garcía et al, 2018;Williams et al, 2014). The value proposition is expected to increase the propensity among the customers to buy from an omnichannel retailer.…”

Section: Introductionmentioning

confidence: 99%

Look Before You Leap: Economics of Being an Omnichannel Retailer

Saha

Bhattacharya

2020

OSCM: An Int. Journal

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This paper investigates how the market gets segmented when an omnichannel retailer enters a market hitherto served by non-omnichannel retailers. The added value derived from the omnichannel flexibility is expected to draw more customers to an omnichannel retailer, luring them away from the incumbent non-omnichannel peers. However, the customers are expected to be heterogeneous in their valuation of the omnichannel flexibilities offered. Also, since acquiring omnichannel flexibility entails additional costs for service integration, the omnichannel aspirant is expected to charge a higher price from the customers than its non-omnichannel competitors. Our model considers both these factors, and derives analytical expression for the expected market share of the omnichannel retailer as a function of the price charged by the non-omnichannel peers, the extent of flexibility provided, and the cost of providing the same. Also, given the cost of service integration, we estimate the level of flexibility that an omnichannel retailer must offer if it wants to acquire a specific market share. The findings indicate that the associated integration cost imposes a restriction on the maximum market share an omnichannel entrant can aspire to capture.

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