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Crowdshipping and Same‐day Delivery: Employing In‐store Customers to Deliver Online Orders

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  • Iman Dayarian
  • Martin Savelsbergh

Abstract

Same‐day delivery of online orders is becoming an indispensable service for large retailers. We explore an environment in which in‐store customers supplement company drivers and deliver online orders on their way home. We consider a highly dynamic and stochastic same‐day delivery environment in which online orders as well as in‐store customers willing to make deliveries arrive throughout the day. Studying settings in which delivery capacity is uncertain is novel and practically relevant. Our proposed approaches are simple, yet produce high‐quality solutions in a short amount of time that can be employed in practice. We develop two rolling horizon dispatching approaches: a myopic one that considers only the state of the system when making decisions, and one that also incorporates probabilistic information about future online order and in‐store customer arrivals. We quantify the potential benefits of a novel form of crowdshipping for same‐day delivery and demonstrate the value of exploiting probabilistic information about the future. We explore the advantages and disadvantages of this form of crowdshipping and show the impact of changes in environment characteristics, for example, online order arrival pattern, company fleet size, and in‐store customer compensation on its performance, that is, service quality and operational cost.

Suggested Citation

  • Iman Dayarian & Martin Savelsbergh, 2020. "Crowdshipping and Same‐day Delivery: Employing In‐store Customers to Deliver Online Orders," Production and Operations Management, Production and Operations Management Society, vol. 29(9), pages 2153-2174, September.
    • Handle: RePEc:bla:popmgt:v:29:y:2020:i:9:p:2153-2174
    DOI: 10.1111/poms.13219
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    References listed on IDEAS

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    Cited by:

    1. Du, Jianhui & Zhang, Zhiqin & Wang, Xu & Lau, Hoong Chuin, 2023. "A hierarchical optimization approach for dynamic pickup and delivery problem with LIFO constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    2. Nieto-Isaza, Santiago & Fontaine, Pirmin & Minner, Stefan, 2022. "The value of stochastic crowd resources and strategic location of mini-depots for last-mile delivery: A Benders decomposition approach," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 62-79.
    3. Martin W.P Savelsbergh & Marlin W. Ulmer, 2022. "Challenges and opportunities in crowdsourced delivery planning and operations," 4OR, Springer, vol. 20(1), pages 1-21, March.
    4. Chen, Xinwei & Wang, Tong & Thomas, Barrett W. & Ulmer, Marlin W., 2023. "Same-day delivery with fair customer service," European Journal of Operational Research, Elsevier, vol. 308(2), pages 738-751.
    5. Xiao, Haohan & Xu, Min & Wang, Shuaian, 2023. "Crowd-shipping as a Service: Game-based operating strategy design and analysis," Transportation Research Part B: Methodological, Elsevier, vol. 176(C).
    6. Yu, Vincent F. & Jodiawan, Panca & Redi, A.A.N. Perwira, 2022. "Crowd-shipping problem with time windows, transshipment nodes, and delivery options," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    7. Di Puglia Pugliese, Luigi & Ferone, Daniele & Macrina, Giusy & Festa, Paola & Guerriero, Francesca, 2023. "The crowd-shipping with penalty cost function and uncertain travel times," Omega, Elsevier, vol. 115(C).
    8. Zhang, Jian & Woensel, Tom Van, 2023. "Dynamic vehicle routing with random requests: A literature review," International Journal of Production Economics, Elsevier, vol. 256(C).
    9. Abdollahi, Mohammad & Yang, Xinan & Nasri, Moncef Ilies & Fairbank, Michael, 2023. "Demand management in time-slotted last-mile delivery via dynamic routing with forecast orders," European Journal of Operational Research, Elsevier, vol. 309(2), pages 704-718.
    10. Auad, Ramon & Erera, Alan & Savelsbergh, Martin, 2023. "Courier satisfaction in rapid delivery systems using dynamic operating regions," Omega, Elsevier, vol. 121(C).
    11. Mancini, Simona & Gansterer, Margaretha, 2022. "Bundle generation for last-mile delivery with occasional drivers," Omega, Elsevier, vol. 108(C).
    12. Boysen, Nils & Emde, Simon & Schwerdfeger, Stefan, 2022. "Crowdshipping by employees of distribution centers: Optimization approaches for matching supply and demand," European Journal of Operational Research, Elsevier, vol. 296(2), pages 539-556.
    13. Ghaderi, Hadi & Zhang, Lele & Tsai, Pei-Wei & Woo, Jihoon, 2022. "Crowdsourced last-mile delivery with parcel lockers," International Journal of Production Economics, Elsevier, vol. 251(C).
    14. Tao, Jiawei & Dai, Hongyan & Chen, Weiwei & Jiang, Hai, 2023. "The value of personalized dispatch in O2O on-demand delivery services," European Journal of Operational Research, Elsevier, vol. 304(3), pages 1022-1035.
    15. Wang, Li & Xu, Min & Qin, Hu, 2023. "Joint optimization of parcel allocation and crowd routing for crowdsourced last-mile delivery," Transportation Research Part B: Methodological, Elsevier, vol. 171(C), pages 111-135.
    16. Hou, Ting & Zhang, Wen, 2021. "Optimal two-stage elimination contests for crowdsourcing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    17. Silva, Marco & Pedroso, João Pedro & Viana, Ana, 2023. "Stochastic crowd shipping last-mile delivery with correlated marginals and probabilistic constraints," European Journal of Operational Research, Elsevier, vol. 307(1), pages 249-265.
    18. Soeffker, Ninja & Ulmer, Marlin W. & Mattfeld, Dirk C., 2022. "Stochastic dynamic vehicle routing in the light of prescriptive analytics: A review," European Journal of Operational Research, Elsevier, vol. 298(3), pages 801-820.
    19. dos Santos, André Gustavo & Viana, Ana & Pedroso, João Pedro, 2022. "2-echelon lastmile delivery with lockers and occasional couriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    20. Cebeci, Merve Seher & Tapia, Rodrigo Javier & Kroesen, Maarten & de Bok, Michiel & Tavasszy, Lóránt, 2023. "The effect of trust on the choice for crowdshipping services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    21. Chen, Xinwei & Ulmer, Marlin W. & Thomas, Barrett W., 2022. "Deep Q-learning for same-day delivery with vehicles and drones," European Journal of Operational Research, Elsevier, vol. 298(3), pages 939-952.
    22. Marco Silva & João Pedro Pedroso, 2022. "Deep Reinforcement Learning for Crowdshipping Last-Mile Delivery with Endogenous Uncertainty," Mathematics, MDPI, vol. 10(20), pages 1-23, October.
    23. Zehtabian, Shohre & Larsen, Christian & Wøhlk, Sanne, 2022. "Estimation of the arrival time of deliveries by occasional drivers in a crowd-shipping setting," European Journal of Operational Research, Elsevier, vol. 303(2), pages 616-632.

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