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Anticipatory shipment for pickup point supply

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  • Rasini, Monica
  • Agatz, Niels
  • Tappia, Elena

Abstract

Many retailers allow customers to shop online and collect their orders at a pickup point nearby. In this paper, we study the anticipatory shipment of items to such pickup points in order to improve service and operational efficiency. We formulate a stochastic programming model to support the selection of products and associated quantities to ship to the pickup points in anticipation of customers’ demand. The results of our numerical experiments suggest that anticipatory shipments can have substantial benefits both in terms of cost and lead-time. The benefits increase with the storage space at the pickup point. The anticipatory shipment strategy is especially beneficial in a setting which requires short delivery lead-times and when the e-fulfilment warehouse is further away.

Suggested Citation

  • Rasini, Monica & Agatz, Niels & Tappia, Elena, 2020. "Anticipatory shipment for pickup point supply," Omega, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:jomega:v:93:y:2020:i:c:s0305048317311283
    DOI: 10.1016/j.omega.2019.07.005
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    References listed on IDEAS

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    Cited by:

    1. He, Bo & Gupta, Varun & Mirchandani, Prakash, 2021. "Online selling through O2O platform or on your own? Strategic implications for local Brick-and-Mortar stores," Omega, Elsevier, vol. 103(C).
    2. Guan, Zhimin & Mou, Yuxia & Zhang, Jun, 2024. "Incorporating risk aversion and time preference into omnichannel retail operations considering assortment and inventory optimization," European Journal of Operational Research, Elsevier, vol. 314(2), pages 579-596.
    3. Mar Vazquez-Noguerol & Jose A. Comesaña-Benavides & Sara Riveiro-Sanroman & J. Carlos Prado-Prado, 2022. "A mixed integer linear programming model to support e-fulfillment strategies in warehouse-based supermarket chains," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(4), pages 1369-1402, December.

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