Integrated problem order picking and vehicle routing; Release dates; E-commerce
Abstract :
[en] E-commerce sales are increasing every year and customers who buy
goods on the Internet have high service level expectations. In order to meet these
expectations, a company’s logistics operations need to be performed carefully.
Optimizing only internal warehouse processes will often lead to suboptimal solutions.
The interrelationship between the order picking process and the delivery
process should not be ignored. Therefore, in this study, an order picking problem
and a vehicle routing problem with time windows and release dates are solved
simultaneously using a single optimization framework. To the best of our knowledge,
it is the first time that an order picking problem and a vehicle routing problem
are integrated. A mixed integer linear programming formulation for this integrated
order picking-vehicle routing problem (OP-VRP) is provided. The integrated OPVRP
is solved for small instances and the results are compared to these of an
uncoordinated approach. Computational experiments show that integration can lead
to cost savings of 14% on average. Furthermore, higher service levels can be offered
by allowing customers to request their orders later and still get delivered within the
same time windows.
Research center :
Research Group Logistics - Hasselt University QuantOM - HEC Liège
Disciplines :
Production, distribution & supply chain management
Author, co-author :
Moons, Stef; Universiteit Hasselt - UH > Research Group Logistics
Ramaekers, Katrien; Universiteit Hasselt - UH > Research Group Logistics
Caris, An; Universiteit Hasselt - UH > Research Group Logistics
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