Coordinated delivery in urban retail. (June 2019)

• Record Type: Journal Article
• Authors: Song, Ruidian; Zhao, Lei; Van Woensel, Tom; Fransoo, Jan C.
• Is Part Of: Transportation research. Volume 126(2019)
• Page Start: 122
• Page End: 148
• Publication Date: 2019-06
• Subjects: Urban logistics -- Traditional retail channel -- Coordinated delivery -- Inventory routing problem -- Matheuristic; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2019.03.003
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: We introduce and formulate the Coordinated Delivery Problem. We develop an effective MIP-based matheuristic as a solution algorithm. We benchmark the coordination strategies with RMI and VMI. 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.