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An integrative approach to determine store delivery patterns in grocery retailing

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  • Sternbeck, Michael G.
  • Kuhn, Heinrich

Abstract

This article focuses on the tactical problem of selecting delivery patterns according to which grocery stores are repetitively supplied with products from different order segments by retail-owned distribution centers. The research environment considered consists of logistics processes in DCs, transportation and instore logistics. We identify dependencies on the delivery patterns selected and specify the relevant costs. These costs are reflected in the objective function of a binary selection model. Implementing and applying the model to the real case of a major European retail company yields substantial cost savings potential of 5.3%, amounting to tens of millions of euros per annum.

Suggested Citation

  • Sternbeck, Michael G. & Kuhn, Heinrich, 2014. "An integrative approach to determine store delivery patterns in grocery retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 205-224.
    • Handle: RePEc:eee:transe:v:70:y:2014:i:c:p:205-224
    DOI: 10.1016/j.tre.2014.06.007
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    Cited by:

    1. Broekmeulen, Rob A.C.M. & Sternbeck, Michael G. & van Donselaar, Karel H. & Kuhn, Heinrich, 2017. "Decision support for selecting the optimal product unpacking location in a retail supply chain," European Journal of Operational Research, Elsevier, vol. 259(1), pages 84-99.
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    3. Hübner, Alexander & Schaal, Kai, 2017. "A shelf-space optimization model when demand is stochastic and space-elastic," Omega, Elsevier, vol. 68(C), pages 139-154.
    4. Neves-Moreira, Fábio & Pereira da Silva, Diogo & Guimarães, Luís & Amorim, Pedro & Almada-Lobo, Bernardo, 2018. "The time window assignment vehicle routing problem with product dependent deliveries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 163-183.
    5. Frank, Markus & Ostermeier, Manuel & Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich, 2021. "Optimizing routing and delivery patterns with multi-compartment vehicles," European Journal of Operational Research, Elsevier, vol. 293(2), pages 495-510.
    6. Schlaich, Tim & Hoberg, Kai, 2024. "When is the next order? Nowcasting channel inventories with Point-of-Sales data to predict the timing of retail orders," European Journal of Operational Research, Elsevier, vol. 315(1), pages 35-49.
    7. Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich & Sternbeck, Michael G., 2016. "Delivery pattern and transportation planning in grocery retailing," European Journal of Operational Research, Elsevier, vol. 252(1), pages 54-68.
    8. Lagorio, Alexandra & Pinto, Roberto, 2021. "Food and grocery retail logistics issues: A systematic literature review," Research in Transportation Economics, Elsevier, vol. 87(C).
    9. Özgün Turgut & Florian Taube & Stefan Minner, 2018. "Data-driven retail inventory management with backroom effect," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(4), pages 945-968, October.
    10. Alexander Hübner & Kai Schaal, 2017. "Effect of replenishment and backroom on retail shelf-space planning," Business Research, Springer;German Academic Association for Business Research, vol. 10(1), pages 123-156, June.
    11. Thomas Wensing & Michael G. Sternbeck & Heinrich Kuhn, 2018. "Optimizing case-pack sizes in the bricks-and-mortar retail trade," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(4), pages 913-944, October.
    12. Nils Boysen & David Füßler & Konrad Stephan, 2020. "See the light: Optimization of put‐to‐light order picking systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(1), pages 3-20, February.
    13. Sara Martins & Pedro Amorim & Bernardo Almada-Lobo, 2018. "Delivery mode planning for distribution to brick-and-mortar retail stores: discussion and literature review," Flexible Services and Manufacturing Journal, Springer, vol. 30(4), pages 785-812, December.
    14. Holzapfel, Andreas & Kuhn, Heinrich & Sternbeck, Michael G., 2018. "Product allocation to different types of distribution center in retail logistics networks," European Journal of Operational Research, Elsevier, vol. 264(3), pages 948-966.
    15. Boysen, Nils & de Koster, René & Füßler, David, 2021. "The forgotten sons: Warehousing systems for brick-and-mortar retail chains," European Journal of Operational Research, Elsevier, vol. 288(2), pages 361-381.

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