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Title:Stochastic and dynamic routing with flexible deliveries for an e-grocer
Authors:P.S. Bouwstra, G. Correia, P. Bijl, R.R. Negenborn, B. Atasoy

Conference:24th IEEE Intelligent Transportation Systems Conference (IEEE ITSC'21)
Address:Indianapolis, Indiana
Date:September 2021

Abstract:The quality of the delivery service is a crucial asset for an e-grocer to create and maintain a loyal customer-base. With the rapid market growth of e-grocers over the last decade, there is an urgent need for e-grocer specific routing systems. Although stochastic and dynamic routing models are studied for a wide range of applications, e-grocer specific models are missing in the literature. This paper investigates the concept of flexible deliveries, which introduces differentiated time window sizes. This creates the possibility for real-time re-optimization of the sequence of customers in a trip in order to improve the ontime delivery performance. The potential of flexible deliveries is investigated by means of computational experiments in which historic trip instances from the Dutch e-grocer Picnic are used. It is shown that, when re-optimization is activated, on-time delivery performance is improved and this benefit is significant when flexible deliveries represent at least 10% of the deliveries. When 10% of the deliveries are flexible, the number of late deliveries can be reduced by up to 18% and the number of extreme late deliveries (>= 15 min late) up to 27%. This improved on-time delivery performance comes at the cost of a maximum of 2% increase in the average time spent per delivery.

Reference:P.S. Bouwstra, G. Correia, P. Bijl, R.R. Negenborn, B. Atasoy. Stochastic and dynamic routing with flexible deliveries for an e-grocer. Accepted for the 24th IEEE Intelligent Transportation Systems Conference (IEEE ITSC'21), Indianapolis, Indiana, September 2021.
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