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| Main Authors: | , , , |
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| Format: | Preprint |
| Published: |
2025
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2507.01749 |
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| _version_ | 1866909673348661248 |
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| author | Dehghan, Arash Cevik, Mucahit Bodur, Merve Ghaddar, Bissan |
| author_facet | Dehghan, Arash Cevik, Mucahit Bodur, Merve Ghaddar, Bissan |
| contents | This paper examines the use of in-store customers as delivery couriers in a centralized crowd-shipping system, targeting the growing need for efficient last-mile delivery in urban areas. We consider a brick-and-mortar retail setting where shoppers are offered compensation to deliver time-sensitive online orders. To manage this process, we propose a Markov Decision Process (MDP) model that captures key uncertainties, including the stochastic arrival of orders and crowd-shippers, and the probabilistic acceptance of delivery offers. Our solution approach integrates Neural Approximate Dynamic Programming (NeurADP) for adaptive order-to-shopper assignment with a Deep Double Q-Network (DDQN) for dynamic pricing. This joint optimization strategy enables multi-drop routing and accounts for offer acceptance uncertainty, aligning more closely with real-world operations. Experimental results demonstrate that the integrated NeurADP + DDQN policy achieves notable improvements in delivery cost efficiency, with up to 6.7\% savings over NeurADP with fixed pricing and approximately 18\% over myopic baselines. We also show that allowing flexible delivery delays and enabling multi-destination routing further reduces operational costs by 8\% and 17\%, respectively. These findings underscore the advantages of dynamic, forward-looking policies in crowd-shipping systems and offer practical guidance for urban logistics operators. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2507_01749 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Joint Matching and Pricing for Crowd-shipping with In-store Customers Dehghan, Arash Cevik, Mucahit Bodur, Merve Ghaddar, Bissan Artificial Intelligence This paper examines the use of in-store customers as delivery couriers in a centralized crowd-shipping system, targeting the growing need for efficient last-mile delivery in urban areas. We consider a brick-and-mortar retail setting where shoppers are offered compensation to deliver time-sensitive online orders. To manage this process, we propose a Markov Decision Process (MDP) model that captures key uncertainties, including the stochastic arrival of orders and crowd-shippers, and the probabilistic acceptance of delivery offers. Our solution approach integrates Neural Approximate Dynamic Programming (NeurADP) for adaptive order-to-shopper assignment with a Deep Double Q-Network (DDQN) for dynamic pricing. This joint optimization strategy enables multi-drop routing and accounts for offer acceptance uncertainty, aligning more closely with real-world operations. Experimental results demonstrate that the integrated NeurADP + DDQN policy achieves notable improvements in delivery cost efficiency, with up to 6.7\% savings over NeurADP with fixed pricing and approximately 18\% over myopic baselines. We also show that allowing flexible delivery delays and enabling multi-destination routing further reduces operational costs by 8\% and 17\%, respectively. These findings underscore the advantages of dynamic, forward-looking policies in crowd-shipping systems and offer practical guidance for urban logistics operators. |
| title | Joint Matching and Pricing for Crowd-shipping with In-store Customers |
| topic | Artificial Intelligence |
| url | https://arxiv.org/abs/2507.01749 |