Stochastic and dynamic routing with flexible deliveries for an e-grocer

Pieter S. Bouwstra, Gonçalo Correia , Peter Bijl, Rudy R. Negenborn, Bilge Atasoy

Research output: Chapter in Book/Conference proceedings/Edited volumeConference contributionScientificpeer-review

Abstract

The quality of the delivery service is a crucial asset for an e-grocer to create and maintain a loyal customer-base. With the rapid market growth of e-grocers over the last decade, there is an urgent need for e-grocer specific routing systems. Although stochastic and dynamic routing models are studied for a wide range of applications, e-grocer specific models are missing in the literature. This paper investigates the concept of flexible deliveries, which introduces differentiated time window sizes. This creates the possibility for real-time re-optimization of the sequence of customers in a trip in order to improve the on-time delivery performance. The potential of flexible deliveries is investigated by means of computational experiments in which historic trip instances from the Dutch e-grocer Picnic are used. It is shown that, when re-optimization is activated, on-time delivery performance is improved and this benefit is significant when flexible deliveries represent at least 10% of the deliveries. When 10% of the deliveries are flexible, the number of late deliveries can be reduced by up to 18% and the number of extreme late deliveries (≥15 min late) up to 27%. This improved on-time delivery performance comes at the cost of a maximum of 2% increase in the average time spent per delivery.

Original languageEnglish
Title of host publicationProceedings of the 2021 IEEE International Intelligent Transportation Systems Conference (ITSC)
PublisherIEEE
Pages3354-3359
ISBN (Electronic)978-1-7281-9142-3
ISBN (Print)978-1-7281-9143-0
DOIs
Publication statusPublished - 2021
EventITSC 2021: 24th IEEE International Intelligent Transportation Systems Conference - Virtual at Indianapolis, United States
Duration: 19 Sep 202122 Sep 2021
Conference number: 24th

Conference

ConferenceITSC 2021
CountryUnited States
CityVirtual at Indianapolis
Period19/09/2122/09/21

Bibliographical note

Green Open Access added to TU Delft Institutional Repository 'You share, we take care!' - Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

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