Practice Summary: Cainiao Optimizes the Fulfillment Routes of Parcels

Biao Yuan (), Zengde Deng (), Na Geng (), Yujie Chen () and Haoyuan Hu ()
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Biao Yuan: Sino-US Global Logistics Institute, Shanghai Jiao Tong University, Shanghai 200030, China
Zengde Deng: Cainiao Network, Hangzhou, Zhejiang 311100, China
Na Geng: Sino-US Global Logistics Institute, Shanghai Jiao Tong University, Shanghai 200030, China
Yujie Chen: Cainiao Network, Hangzhou, Zhejiang 311100, China
Haoyuan Hu: Cainiao Network, Hangzhou, Zhejiang 311100, China

Interfaces, 2023, vol. 53, issue 6, 446-450

Abstract: Cainiao collaborates with thousands of logistics partners to provide the most cost- and time-efficient delivery services. In this work, we develop a decision support system to select good fulfillment routes consisting of partners for newly created parcels. The system’s core optimization component contains a proportion algorithm based on solving an offline integer programming problem and an online algorithm based on dual values of the associated linear programming relaxation. The company has implemented the system to transport numerous parcels from China to other countries and regions, thus saving millions of dollars annually.

Keywords: logistics; online optimization; assignment; integer programming (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:53:y:2023:i:6:p:446-450

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