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Time Slot Management in Attended Home Delivery

Author

Listed:
  • Agatz, N.A.H.
  • Campbell, A.M.
  • Fleischmann, M.
  • Savelsbergh, M.W.P.

Abstract

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 two fully-automated approaches that are capable of producing high-quality delivery time slot offerings in a reasonable amount of time. Computational experiments reveal the value of these approaches and the impact of the environment on the underlying trade-offs.

Suggested Citation

  • Agatz, N.A.H. & Campbell, A.M. & Fleischmann, M. & Savelsbergh, M.W.P., 2008. "Time Slot Management in Attended Home Delivery," ERIM Report Series Research in Management ERS-2008-022-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:12245
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    References listed on IDEAS

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    More about this item

    Keywords

    continuous approximation; e-grocery; home delivery; integer programming; time slots; vehicle routing;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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