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3821. A tactical time slot management problem under mixed logit demand

Invited abstract in session MD-59: Customer behaviour, stream Pricing and Revenue Management.

Monday, 14:30-16:00
Room: S08 (building: 101)

Authors (first author is the speaker)

1. Dorsa Abdolhamidi
HEC-Department of Operations, University of Lausanne
2. Virginie Lurkin
HEC, University of Lausanne

Abstract

The growth of e-commerce has led to increased requests for home deliveries, including attended home deliveries for subscription-based platforms, which require frequent customer presence at home. To accommodate customer availability, many online retailers offer different delivery time slots. Providing these time slots is convenient for customers but results in higher uncertainty for the retailer. This paper introduces a novel model tailored for subscription-based e-retailers in which customers' decisions regarding delivery slots and their corresponding impact on routing costs are explicitly considered. The slots' assortment and discounts on prices are considered control variables in our model. Our research employs a mixed-integer linear programming framework integrated with a mixed logit model, capturing customer preferences' stochastic and diverse nature in delivery time slots. We use an adaptive large neighborhood search to be able to solve this problem for large instances of this problem. Numerical experiments are conducted to show the effectiveness of these approaches. Results indicate the importance of accounting for the uncertain heterogeneous behavior of customers when deciding about the assortment and price discount rates of time slots.

Keywords

Status: accepted

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