Time Slot Management in Attended Home Delivery
Many e-tailers providing attended home delivery, especially e-grocers, offer narrow delivery time slots to ensure satisfactory customer service. The choice of delivery time slots has to balance marketing and operational considerations, which results in a complex planning problem. We study the problem of selecting the set of time slots to offer in each of the zip codes in a service region. The selection needs to facilitate cost-effective delivery routes, but also needs to ensure an acceptable level of service to the customer. We present two fully-automated approaches that are capable of producing high-quality delivery time slot offerings in a reasonable amount of time. Computational experiments reveal the value of these approaches and the impact of the environment on the underlying trade-offs.
|Keywords||continuous approximation, e-grocery, home delivery, integer programming, time slots, vehicle routing|
|Publisher||Erasmus Research Institute of Management (ERIM)|
Agatz, N.A.H., Campbell, A., Fleischmann, M., & Savelsbergh, M.W.P.. (2008). Time Slot Management in Attended Home Delivery (No. ERS-2008-022-LIS). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/12245