Coordinated delivery in urban retail

R. Song; Lei Zhao; T. van Woensel; Jan C. Fransoo

doi:10.1016/j.tre.2019.03.003

Coordinated delivery in urban retail

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

^*Corresponding author for this work

Research output: Contribution to journal › Article › Scientific › peer-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 language	English
Pages (from-to)	122-148
Number of pages	27
Journal	Transportation Research Part E-Logistics and Transportation Review
Volume	126
DOIs	https://doi.org/10.1016/j.tre.2019.03.003
Publication status	Published - 1 Jun 2019
Externally published	Yes

Keywords

Coordinated delivery
Inventory routing problem
Matheuristic
Traditional retail channel
Urban logistics

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Cite this

@article{3f1421c0ae9e44a1bb301d1c827581fa,

title = "Coordinated delivery in urban retail",

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.",

keywords = "Coordinated delivery, Inventory routing problem, Matheuristic, Traditional retail channel, Urban logistics",

author = "R. Song and Lei Zhao and {van Woensel}, T. and Fransoo, {Jan C.}",

year = "2019",

month = jun,

day = "1",

doi = "10.1016/j.tre.2019.03.003",

language = "English",

volume = "126",

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journal = "Transportation Research Part E-Logistics and Transportation Review",

issn = "1366-5545",

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TY - JOUR

T1 - Coordinated delivery in urban retail

AU - Song, R.

AU - Zhao, Lei

AU - van Woensel, T.

AU - Fransoo, Jan C.

PY - 2019/6/1

Y1 - 2019/6/1

N2 - 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.

AB - 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.

KW - Coordinated delivery

KW - Inventory routing problem

KW - Matheuristic

KW - Traditional retail channel

KW - Urban logistics

U2 - 10.1016/j.tre.2019.03.003

DO - 10.1016/j.tre.2019.03.003

M3 - Article

SN - 1366-5545

VL - 126

SP - 122

EP - 148

JO - Transportation Research Part E-Logistics and Transportation Review

JF - Transportation Research Part E-Logistics and Transportation Review

ER -

Coordinated delivery in urban retail

Abstract

Keywords

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