Optimal delivery service strategy for Internet shopping with time-dependent consumer demand

Chaug-Ing Hsu and Hui-Chieh Li

Transportation Research Part E: Logistics and Transportation Review, 2006, vol. 42, issue 6, 473-497

Abstract: This study attempts to optimize a delivery service strategy for Internet shopping by considering time-dependent consumer demand, demand-supply interaction and consumer socioeconomic characteristics. A nonlinear mathematical programming model is formulated for solving the optimal number and duration of service cycles for discriminating strategy by maximizing profit subject to demand-supply interaction. An example is employed to demonstrate the application of the model. Results suggest that discriminating service strategy is a better strategy in response to time-dependent consumer demand than uniform strategy. Finally, the proposed model is demonstrated to yield more profit than models that do not consider variations in consumer demand or demand-supply interaction.

Keywords: Internet; shopping; Time-dependent; consumer; demand; Logistics; cost; Demand-supply; interaction (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (7)

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