1349. Urban Network Design with Ship-from-Store Option
Invited abstract in session TC-47: E-commerce, stream Retail Operations.
Tuesday, 12:30-14:00Room: Parkinson B08
Authors (first author is the speaker)
| 1. | Imen Ben Mohamed
|
| Operations, Data and Artificial Intelligence (ODAI) Department, em-lyon business school | |
| 2. | Walid Klibi
|
| Operations Management and Information Systems Department, KEDGE Business School | |
| 3. | Florian Bertrand
|
| Kedge Business School | |
| 4. | Juan Carlos Pina Pardo
|
| Center for Transportation and Logistics, Massachusetts Institute of Technology |
Abstract
To meet the increase of tight responsiveness requirements, we introduce the urban delivery network design problem with ship-from store option under uncertainty. The problem builds on the two-echelon distribution structure by integrating stores as an intermediate layer to fulfill and deliver online orders. The problem involves decisions on store selection and carrier pickup time from selected stores while anticipating the revenues and costs induced by order fulfillment, delivery, store replenishment, and inventory holding. A two-stage stochastic program with mixed-integer recourse is developed to model this problem while considering the uncertain nature of multi-item online orders, in-store demand, and capacities. An exact solution approach combining scenario sampling with an integer L-shaped-based decomposition algorithm is proposed. Numerical results, inspired by a retailer's real case, are conducted to validate our model and to evaluate the efficiency of our solution approach.
Keywords
- Network Design
- E-Commerce
- Stochastic Optimization
Status: accepted
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