Logistics Service Mode Selection for Last Mile Delivery: An Analysis Method Considering Customer Utility and Delivery Service Cost

Feng Li, Zhi-Ping Fan, Bing-Bing Cao and Xin Li
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Feng Li: Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China
Zhi-Ping Fan: Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China
Bing-Bing Cao: School of Management, Guangzhou University, Guangzhou 510006, China
Xin Li: Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China

Sustainability, 2020, vol. 13, issue 1, 1-22

Abstract: Last mile delivery is an important part in the logistics service process of express enterprises since it can directly contact with the customer and affect customer satisfaction. How to select a suitable logistics service mode for last mile delivery with the objectives of lower delivery service cost and higher customer satisfaction is a noteworthy research topic. In this paper, we focus on the analysis method for logistics service mode selection for last mile delivery considering customer utility and delivery service cost. First, we conduct the market survey of customer needs and discuss the market segmentation, and then we propose a customer utility value calculation model based on utility theory. Next, we propose a delivery quantity prediction method based on the time series prediction and customer selection probability calculation. Furthermore, we construct a cost accounting model to determine the delivery service cost. On this basis, we show the selection of the suitable logistics service mode for last mile delivery according to the analysis results of customer utility and delivery service cost. Finally, we show the feasibility and effectiveness of the proposed method by a case analysis.

Keywords: last mile delivery; logistics service mode selection; customer utility; delivery service cost (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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