Quotation Martin, Florian, Hemmelmayr, Vera, Wakolbinger, Tina. 2021. Integrated express shipment service network design with customer choice and endogenous delivery time restrictions. European Journal of Operational Research (EJOR). 294 (2), 590-603.


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Abstract

Express parcel carriers offer a wide range of guaranteed delivery times in order to separate customers who value quick delivery from those that are less time but more price sensitive. To reflect the additional complexity this segmentation adds to the task of optimizing the logistics operations, we present a new model that accounts for the interplay between pricing of due times, customer decisions and the associated restrictions in the distribution process. This profit-maximizing express shipment service network design problem is solved by a heuristic solution approach that simultaneously determines the ideal set of offered delivery times, the associated pricing scheme and the load plan in order to maximize profit. High-quality solutions for realistically-sized instances are derived by a genetic-algorithm-based heuristic that exploits information of previously evaluated iterations. Using this new integrated approach, we provide insight on the potential benefit of an integrated model over sequential optimization of revenue and delivery cost. We also investigate the impact of tighter delivery due times on resource requirements and whether more granular service segmentation can be considered a profitable strategy in multimodal express parcel delivery networks.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Journal of Operational Research (EJOR)
Citation Index SCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-A, VW-B, WH-A
Language English
Title Integrated express shipment service network design with customer choice and endogenous delivery time restrictions
Volume 294
Number 2
Year 2021
Page from 590
Page to 603
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S0377221721000928
DOI https://doi.org/10.1016/j.ejor.2021.02.014
Open Access Y
Open Access Link https://www.sciencedirect.com/science/article/pii/S0377221721000928?via%3Dihub

Associations

People
Hemmelmayr, Vera (Details)
Wakolbinger, Tina (Details)
External
Martin, Florian (WU, Austria)
Organization
Institute for Transport and Logistics Management (Details)
Research Institute for Supply Chain Management FI (Details)
Competence Center for Sustainability Transformation and Responsibility WE (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
1121 Operations research (Details)
5300 Economics (Details)
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