Time Slot Management in Attended Home Delivery

Agatz, Niels; Campbell, Ann; Fleischmann, Moritz; Savelsbergh, Martin
August 2011
Transportation Science;Aug2011, Vol. 45 Issue 3, p435
Academic Journal
Many e-tailers providing attended home delivery, especially e-grocers, offer narrow delivery time slots to ensure satisfactory customer service. The choice of delivery time slots has to balance marketing and operational considerations, which results in a complex planning problem. We study the problem of selecting the set of time slots to offer in each of the zip codes in a service region. The selection needs to facilitate cost-effective delivery routes, but also needs to ensure an acceptable level of service to the customer. We present a fully automated approach that is capable of producing high-quality delivery time slot offerings in a short amount of time. Computational experiments reveal the value of this approach and the impact of the environment on the underlying trade-offs.


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