Coordinated delivery in urban retail

R. Song, Lei Zhao*, T. van Woensel, Jan C. Fransoo

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

In the Coordinated Delivery Problem (CDP), we study the passive and proactive coordination strategies that coordinate the delivery among urban retail stores. We formulate the CDP as mixed integer programs and develop a matheuristic, the effectiveness of which is evaluated via newly generated instances. Our numerical study shows that, when the stores prefer placing orders based on their own inventory policies, the proactive coordination strategy is able to achieve similar logistics and services performances to Vendor Managed Inventory (VMI), while respecting the store order decisions as under Retailer Managed Inventory (RMI), and thus offers an excellent combination of VMI and RMI.
Original languageEnglish
Pages (from-to)122-148
Number of pages27
JournalTransportation Research Part E: Logistics and Transportation Review
Volume126
DOIs
Publication statusPublished - 1 Jun 2019
Externally publishedYes

Keywords

  • Coordinated delivery
  • Inventory routing problem
  • Matheuristic
  • Traditional retail channel
  • Urban logistics

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