Coordinated delivery in urban retail

Ruidian Song, Lei Zhao, Tom Van Woensel and Jan C. Fransoo

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 126, issue C, 122-148

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: Urban logistics; Traditional retail channel; Coordinated delivery; Inventory routing problem; Matheuristic (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.tre.2019.03.003

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