Coordinated delivery in urban retail

R. Song, Lei Zhao (Corresponding author), T. van Woensel, Jan Fransoo

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
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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

Keywords

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

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