2405. Designing an Optimal hyperlocal distribution network to achieve operational efficiencies in context of Quick Commerce in India
Invited abstract in session WC-5: Multiobjective Decision Making and Integer Programming, stream Decision Theory and Multi-criteria Decision Making.
Wednesday, 13:30-15:00Room: H7
Authors (first author is the speaker)
| 1. | Harpreet Kaur
|
| Operations Management, Indian Institute of Management Amritsar |
Abstract
Quick commerce has gained significant traction in the post-COVID era, particularly across Southeast Asian and European markets. Quick commerce or rapid delivery systems enables ultra-fast fulfilment of a wide range of products through a network of hyperlocal distribution centres often called dark stores. It is driven by the evolving consumer demand for speed and convenience. However, it is observed that many companies entering the quick commerce space struggle to achieve operational efficiency, often incurring substantial losses and, ultimately shut down. Selection of optimal dark store location and size directly impact speed, cost, and customer service level which can help companies in achieving operational efficiencies. This paper identifies and evaluates the key factors affecting dark store location selection within the complex urban and semi-urban regions of India. The factors were identified through an extensive literature review and semi-structured interviews with key industry stakeholders. The paper uses Decision-Making Trial and Evaluation Laboratory (DEMATEL) method to understand the complex interrelationships among criteria and evaluate the criteria. Further, Best-Worst Method (BWM) is used to evaluate and rank potential location alternatives. The resulting weights from BWM are then integrated into a multi-objective mixed-integer linear programming (MOMILP) model to optimize location decisions aligned with a firm's strategic goals. The proposed framework is demonstrated through a real-world case example. The findings indicate that selecting optimal locations for dark stores significantly enhances operational efficiency and maximizes the achievement of strategic objectives for the firm.
Keyworks: Rapid delivery, location selection, Q-commerce, MCDM, MOMILP
Keywords
- Facilities Planning and Design
- Integer Programming
- Multi-Objective Decision Making
Status: accepted
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