- Conference Article
5
- 10.1109/wsc52266.2021.9715480
Simulation and Optimization Framework for On-Demand Grocery Delivery
- Dec 12, 2021
- Siddhartha Paul + 1 more +1
This paper presents a generic two-stage optimization model and a simulation framework for on-demand grocery delivery. The proposed simulation framework can be used to reproduce any historical day's behaviour or evaluating various what-if scenarios. The two-stage optimization model's objective is to minimize the Cost Per Delivery (CPD) and maximize Customer Experience (CX). In the first stage, Last-Mile (LM) delivery optimization is modelled as a Pickup and Delivery Problem with Time Windows (PDPTW). Both static and dynamic variants of the PDPTW model are tried out and compared to their performances. A Just-In-Time (JIT) heuristic is integrated with PDPTW to minimize waiting time. The second stage solves the First-Mile (FM) delivery optimization using a multi-objective assignment model for trading off between the CPD and CX. The proposed framework is simulated with actual order data and it was found that the the dynamic PDPTW model results in significant savings in CPD while maintaining a good CX.
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