Last Truck Scheduling for Middle-mile Next-day Delivery Coverage

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Benidis, Konstantinos, Paschos, Georgios, Gross, Martin, Iosifidis, George
Format: Preprint
Published: 2023
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866913799527727104
author Benidis, Konstantinos
Paschos, Georgios
Gross, Martin
Iosifidis, George
author_facet Benidis, Konstantinos
Paschos, Georgios
Gross, Martin
Iosifidis, George
contents We consider an e-commerce retailer operating a supply chain that consists of middle- and last-mile transportation, and study its ability to deliver products stored in warehouses within a day from customer's order time. Successful next-day delivery requires inventory availability and timely truck schedules in the middle-mile and in this paper we assume a fixed inventory position and focus on optimizing the middle-mile last truck schedule. We formulate a novel optimization problem which decides the departure of the last truck at each (potential) network connection in order to maximize the number of customer orders that are served with next-day promise. We show that the respective next-day delivery optimization is a combinatorial problem that is NP-hard to approximate within $(1-1/e)opt\approx 0.632opt$, hence every retailer that offers one-day deliveries has to deal with this complexity barrier. We study three variants of the problem motivated by operational constraints that different retailers encounter, and propose solutions schemes tailored to each problem's properties. To that end, we rely on greedy submodular maximization, pipage rounding techniques, and Lagrangian heuristics. The algorithms are scalable, offer worst-case optimality gap guarantees, and evaluated in realistic datasets and network scenarios were found to achieve even near-optimal results.
format Preprint
id arxiv_https___arxiv_org_abs_2310_18388
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Last Truck Scheduling for Middle-mile Next-day Delivery Coverage
Benidis, Konstantinos
Paschos, Georgios
Gross, Martin
Iosifidis, George
Data Structures and Algorithms
We consider an e-commerce retailer operating a supply chain that consists of middle- and last-mile transportation, and study its ability to deliver products stored in warehouses within a day from customer's order time. Successful next-day delivery requires inventory availability and timely truck schedules in the middle-mile and in this paper we assume a fixed inventory position and focus on optimizing the middle-mile last truck schedule. We formulate a novel optimization problem which decides the departure of the last truck at each (potential) network connection in order to maximize the number of customer orders that are served with next-day promise. We show that the respective next-day delivery optimization is a combinatorial problem that is NP-hard to approximate within $(1-1/e)opt\approx 0.632opt$, hence every retailer that offers one-day deliveries has to deal with this complexity barrier. We study three variants of the problem motivated by operational constraints that different retailers encounter, and propose solutions schemes tailored to each problem's properties. To that end, we rely on greedy submodular maximization, pipage rounding techniques, and Lagrangian heuristics. The algorithms are scalable, offer worst-case optimality gap guarantees, and evaluated in realistic datasets and network scenarios were found to achieve even near-optimal results.
title Last Truck Scheduling for Middle-mile Next-day Delivery Coverage
topic Data Structures and Algorithms
url https://arxiv.org/abs/2310.18388