Integration; Order picking; Vehicle routing problem; Meta-heuristic algorithm; E-commerce logistics
Abstract :
[en] In B2C e-commerce sales, customers expect a fast and low-cost delivery. To be able to fulfill these customer expectations, both warehouse and distribution operations have to be performed in an efficient and effective way. Ideally, these two supply chain functions should be considered simultaneously in an integrated problem since they are interrelated. In this paper, a record-to-record travel algorithm is proposed to solve the integrated order picking-vehicle routing problem (I-OP-VRP). Experiments with both small-size and large-size instances are conducted. Furthermore, the integrated approach is compared with an approach in which both problems are solved sequentially. Results show that integration leads to increased service levels, i.e., it allows to shorten the time between placing an order and receiving the goods. On top, the integrated approach leads to costs savings of on average 1.8%. Thus, integration is indispensable for a fast and cost-efficient delivery of goods.
Research center :
Research Group Logistics, UHasselt - Hasselt University QuantOM, HEC Liège - Management School of the University of Liège
Disciplines :
Production, distribution & supply chain management
Author, co-author :
Moons, Stef; Universiteit Hasselt - UH > Research Group Logistics
Braekers, Kris; Universiteit Hasselt - UH > Research Group Logistics
Ramaekers, Katrien; Universiteit Hasselt - UH > Research Group Logistics
Caris, An; Universiteit Hasselt - UH > Research Group Logistics
Belo-Filho, M. A. F., P., Amorim, and B., Almada-Lobo. 2015. “An Adaptive Large Neighbourhood Search for the Operational Integrated Production and Distribution Problem of Perishable Products.” International Journal of Production Research 53 (20): 6040–6058. doi: 10.1080/00207543.2015.1010744
Blauwens, G., P., De Baere, and E., Van De Voorde. 2016. “Cost Calculation in a Transport Firm.” In Transport Economics, 6th ed. Chap. 5, edited by G. Blauwens, P. De Baere, and E. Van De Voorde, Berchem: De Boeck.
Cárdenas, I., J., Beckers, and T., Vanelslander. 2017. “E-commerce Last-mile in Belgium: Developing An External Cost Delivery Index.” Research in Transportation Business & Management 24: 123–129. doi: 10.1016/j.rtbm.2017.07.006
Chen, Z.-L., 2004. “Integrated Production and Distribution Operations: Taxonomy, Models, and Review.” In Handbook of Quantitative Supply Chain Analysis: Modeling in the E-Business Era, edited by D. Simchi-Levi, S.D. Wu, and Z.-J. Shen, 711–746. Boston: Kluwer Academic Publishers.
Croes, G. A., 1958. “A Method for Solving Traveling-Salesman Problems.” Operations Research 6 (6): 791–812. doi: 10.1287/opre.6.6.791
Du, T. C., E. Y., Li, and D., Chou. 2005. “Dynamic Vehicle Routing for Online B2C Delivery.” Omega33 (1): 33–45. doi: 10.1016/j.omega.2004.03.005
Gong, Y., and R., de Koster. 2008. “A Polling-Based Dynamic Order Picking System for Online Retailers.” IIE Transactions 40 (11): 1070–1082. doi: 10.1080/07408170802167670
Groër, C., B., Golden, and E, Wasil. 2009. “The Consistent Vehicle Routing Problem.” Manufacturing & Service Operations Management 11 (4): 630–643. doi: 10.1287/msom.1080.0243
Albert Heijn. “Hoe wil je je boodschappen ontvangen? (How Do You Want Your Groceries to be Delivered?)” n.d. https://www.ah.nl/kies-moment/bezorgen/1099AM.
Interactive Media in Retail Group. 2014. IMRG UK Consumer Home Delivery Review 2014.
Li, F., B., Golden, and E., Wasil. 2007. “The Open Vehicle Routing Problem: Algorithms, Large-Scale Test Problems, and Computational Results.” Computers & Operations Research 34 (10): 2918–2930. doi: 10.1016/j.cor.2005.11.018
Liu, L., K., Li, and Z., Liu. 2017. “A Capacitated Vehicle Routing Problem with Order Available Time in E-Commerce Industry.” Engineering Optimization 49 (3): 449–465. doi: 10.1080/0305215X.2016.1188092
López-Ibáñez, M., J., Dubois-Lacoste, L., Pérez Cáceres, M., Birattari, and T., Stützle. 2016. “The Irace Package: Iterated Racing for Automatic Algorithm Configuration.” Operations Research Perspectives 3: 43–58. doi: 10.1016/j.orp.2016.09.002
Low, C., C. M., Chang, and B. Y., Gao. 2017. “Integration of Production Scheduling and Delivery in Two Echelon Supply Chain.” International Journal of Systems Science: Operations & Logistics 4 (2): 122–134.
Low, C., C. M., Chang, R. K., Li, and C. L., Huang. 2014. “Coordination of Production Scheduling and Delivery Problems with Heterogeneous Fleet.” International Journal of Production Economics 153: 139–148. doi: 10.1016/j.ijpe.2014.02.014
Low, C., R. K., Li, and C. M., Chang. 2013. “Integrated Scheduling of Production and Delivery with Time Windows.” International Journal of Production Research 51 (3): 897–909. doi: 10.1080/00207543.2012.677071
Moons, S., K., Ramaekers, A., Caris, and Y., Arda. 2017a. “Integrating Production Scheduling and Vehicle Routing Decisions At the Operational Decision Level: A Review and Discussion.” Computers & Industrial Engineering 104: 224–245. doi: 10.1016/j.cie.2016.12.010
Moons, S., K., Ramaekers, A., Caris, and Y., Arda. 2017b. “Integration of Order Picking and Vehicle Routing in a B2C E-Commerce Context.” Flexible Services and Manufacturing Journal. Forthcoming.
Coolblue. “Op afspraak bezorgd (Delivered by Appointment).” n.d. https://www.coolblue.be/nl/klantenservice/2824/informatie-over/op-afspraak-bezorgd.html.
Petersen, C. G., 2000. “An Evaluation of Order Picking Policies for Mail Order Companies.” Production and Operations Management 9 (4): 319–335.
Punakivi, M., and J., Saranen. 2001. “Identifying the Success Factors in E-grocery Home Delivery.” International Journal of Retail & Distribution Management 29 (4): 156–163. doi: 10.1108/09590550110387953
Rosenkrantz, D. J., R. E., Stearns, and P. M., Lewis II. 1977. “An Analysis of Several Heuristics for the Traveling Salesman Problem.” SIAM Journal on Computing 6: 563–581. doi: 10.1137/0206041
Ruben, R. A., and F. R., Jacobs. 1999. “Batch Construction Heuristics and Storage Assignment Strategies for Walk/Ride and Pick Systems.” Management Science 45 (4): 575–596. doi: 10.1287/mnsc.45.4.575
Savelsbergh, M. W. P., 1992. “The Vehicle Routing Problem with Time Windows: Minimizing Route Duration.” ORSA Journal on Computing 4 (2): 146–154. doi: 10.1287/ijoc.4.2.146
Schmid, V., K. F., Doerner, and G., Laporte. 2013. “Rich Routing Problems Arising in Supply Chain Management.” European Journal of Operational Research 224: 435–448. doi: 10.1016/j.ejor.2012.08.014
Schubert, D., A., Scholz, and G., Wäscher. 2018. “Integrated Order Picking and Vehicle Routing with Due Dates.” OR Spectrum. Forthcoming.
Speranza, M. G., 2018. “Trends in Transportation and Logistics.” European Journal of Operational Research 264: 830–836. doi: 10.1016/j.ejor.2016.08.032
Toth, P., and D., Vigo, eds. 2014. Vehicle Routing: Problems, Methods, and Applications. 2nd ed. Philadelphia: Society for Industrial and Applied Mathematics.
Vidal, T., T. G., Crainic, M., Gendreau, and C., Prins. 2015. “Timing Problems and Algorithms: Time Decisions for Sequences of Activities.” Networks 65 (2): 102–128. doi: 10.1002/net.21587
Zhang, J., X., Wang, and K., Huang. 2016. “Integrated on-line Scheduling of Order Batching and Delivery Under B2C E-commerce.” Computers & Industrial Engineering 94: 280–289. doi: 10.1016/j.cie.2016.02.001
Zhang, J., X., Wang, and K., Huang. 2017. “On-line Scheduling of Order Picking and Delivery with Multiple Zones and Limited Vehicle Capacity.” Omega 79: 104–115. doi: 10.1016/j.omega.2017.08.004
