Integrating Customer Choice in Differentiated Slotting for Last-Mile Logistics
In this paper, we study an e-grocer’s problem of differentiated slotting in last-mile logistics for attended home delivery. The purpose of differentiated slotting is to statically determine which time slots should be on offer throughout the selling horizon in each area of a delivery region on each f...
Main Authors: | , , |
---|---|
Format: | Article |
Language: | English |
Published: |
BVL
2019-04-01
|
Series: | Logistics Research |
Subjects: | |
Online Access: | https://www.bvl.de/lore/all-volumes--issues/volume-12/issue-1/integrating-customer-choice-in-differentiated-slotting-for-last-mile-logistics |
id |
doaj-8eaf129ac15446c99cbb19b9c2df60cf |
---|---|
record_format |
Article |
spelling |
doaj-8eaf129ac15446c99cbb19b9c2df60cf2020-11-25T01:22:45ZengBVLLogistics Research1865-035X1865-03682019-04-0112110.23773/2019_5Integrating Customer Choice in Differentiated Slotting for Last-Mile LogisticsJochen Mackert0Claudius Steinhardt1Robert Klein2Chair of Analytics & Optimization, University of Augsburg, Augsburg, GermanyChair of Business Analytics and Management Science, Bundeswehr University Munich, Neubiberg, GermanyChair of Analytics & Optimization, University of Augsburg, Augsburg, GermanyIn this paper, we study an e-grocer’s problem of differentiated slotting in last-mile logistics for attended home delivery. The purpose of differentiated slotting is to statically determine which time slots should be on offer throughout the selling horizon in each area of a delivery region on each future service day such that costeffective last-mile delivery schedules on an operational level can be expected. For this purpose, in addition to an appropriate approximation of potential delivery tours and costs, it is crucial to adequately consider the customer choice behavior between slots. In this paper, we propose a model-based, profit-oriented slotting approach that accounts for such choice behavior in a realistic, sophisticated fashion using a finite-mixture multinomial logit choice model. We formulate the resulting optimization problem as a non-linear mixedinteger program and show how it can be linearized. Further, we conduct a computational study to examine the benefit of the new approach. In particular, we demonstrate the superiority of our approach to existing approaches in the academic literature, which neglect or simplistically approximate customer choice behavior and which are purely cost-based.https://www.bvl.de/lore/all-volumes--issues/volume-12/issue-1/integrating-customer-choice-in-differentiated-slotting-for-last-mile-logisticslast-mile logisticsattended home deliverye-grocerydelivery time slotcustomer choice behaviormixed-integer programming |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Jochen Mackert Claudius Steinhardt Robert Klein |
spellingShingle |
Jochen Mackert Claudius Steinhardt Robert Klein Integrating Customer Choice in Differentiated Slotting for Last-Mile Logistics Logistics Research last-mile logistics attended home delivery e-grocery delivery time slot customer choice behavior mixed-integer programming |
author_facet |
Jochen Mackert Claudius Steinhardt Robert Klein |
author_sort |
Jochen Mackert |
title |
Integrating Customer Choice in Differentiated Slotting for Last-Mile Logistics |
title_short |
Integrating Customer Choice in Differentiated Slotting for Last-Mile Logistics |
title_full |
Integrating Customer Choice in Differentiated Slotting for Last-Mile Logistics |
title_fullStr |
Integrating Customer Choice in Differentiated Slotting for Last-Mile Logistics |
title_full_unstemmed |
Integrating Customer Choice in Differentiated Slotting for Last-Mile Logistics |
title_sort |
integrating customer choice in differentiated slotting for last-mile logistics |
publisher |
BVL |
series |
Logistics Research |
issn |
1865-035X 1865-0368 |
publishDate |
2019-04-01 |
description |
In this paper, we study an e-grocer’s problem of differentiated slotting in last-mile logistics for attended home delivery. The purpose of differentiated slotting is to statically determine which time slots should be on offer throughout the selling horizon in each area of a delivery region on each future service day such that costeffective last-mile delivery schedules on an operational level can be expected. For this purpose, in addition to an appropriate approximation of potential delivery tours and costs, it is crucial to adequately consider the customer choice behavior between slots. In this paper, we propose a model-based, profit-oriented slotting approach that accounts for such choice behavior in a realistic, sophisticated fashion using a finite-mixture multinomial logit choice model. We formulate the resulting optimization problem as a non-linear mixedinteger program and show how it can be linearized. Further, we conduct a computational study to examine the benefit of the new approach. In particular, we demonstrate the superiority of our approach to existing approaches in the academic literature, which neglect or simplistically approximate customer choice behavior and which are purely cost-based. |
topic |
last-mile logistics attended home delivery e-grocery delivery time slot customer choice behavior mixed-integer programming |
url |
https://www.bvl.de/lore/all-volumes--issues/volume-12/issue-1/integrating-customer-choice-in-differentiated-slotting-for-last-mile-logistics |
work_keys_str_mv |
AT jochenmackert integratingcustomerchoiceindifferentiatedslottingforlastmilelogistics AT claudiussteinhardt integratingcustomerchoiceindifferentiatedslottingforlastmilelogistics AT robertklein integratingcustomerchoiceindifferentiatedslottingforlastmilelogistics |
_version_ |
1725125687066492928 |