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Route-based approximate dynamic programming for dynamic pricing in attended home delivery

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  • Koch, Sebastian
  • Klein, Robert

Abstract

Attended home delivery describes the delivery of goods by e-grocers or e-tailers to customers within an agreed time window. Because customers expect narrow time windows, offering such services may lead to expensive fulfillment operations. This has led to research on how to influence customers’ bookings using time window pricing or slotting. In this paper, we reconsider the problem of demand management through dynamic pricing for attended home delivery services.

Suggested Citation

  • Koch, Sebastian & Klein, Robert, 2020. "Route-based approximate dynamic programming for dynamic pricing in attended home delivery," European Journal of Operational Research, Elsevier, vol. 287(2), pages 633-652.
    • Handle: RePEc:eee:ejores:v:287:y:2020:i:2:p:633-652
    DOI: 10.1016/j.ejor.2020.04.002
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    Cited by:

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    2. Srinivas, Sharan & Ramachandiran, Surya & Rajendran, Suchithra, 2022. "Autonomous robot-driven deliveries: A review of recent developments and future directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    3. Avraham, Edison & Raviv, Tal, 2021. "The steady-state mobile personnel booking problem," Transportation Research Part B: Methodological, Elsevier, vol. 154(C), pages 266-288.
    4. Gür Ali, Özden & Amorim, Pedro, 2024. "Personalized choice model for forecasting demand under pricing scenarios with observational data—The case of attended home delivery," International Journal of Forecasting, Elsevier, vol. 40(2), pages 706-720.
    5. Heydar, Mojtaba & Mardaneh, Elham & Loxton, Ryan, 2022. "Approximate dynamic programming for an energy-efficient parallel machine scheduling problem," European Journal of Operational Research, Elsevier, vol. 302(1), pages 363-380.
    6. Chen, Junlin & Xiong, Jinghong & Chen, Guobao & Liu, Xin & Yan, Peng & Jiang, Hai, 2024. "Optimal instant discounts of multiple ride options at a ride-hailing aggregator," European Journal of Operational Research, Elsevier, vol. 314(2), pages 718-734.
    7. Klein, Vienna & Steinhardt, Claudius, 2023. "Dynamic demand management and online tour planning for same-day delivery," European Journal of Operational Research, Elsevier, vol. 307(2), pages 860-886.
    8. Fleckenstein, David & Klein, Robert & Steinhardt, Claudius, 2023. "Recent advances in integrating demand management and vehicle routing: A methodological review," European Journal of Operational Research, Elsevier, vol. 306(2), pages 499-518.
    9. Abdollahi, Mohammad & Yang, Xinan & Nasri, Moncef Ilies & Fairbank, Michael, 2023. "Demand management in time-slotted last-mile delivery via dynamic routing with forecast orders," European Journal of Operational Research, Elsevier, vol. 309(2), pages 704-718.

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