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A Benders decomposition algorithm for the order fulfilment problem of an e-tailer with a self-owned logistics system

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  • Li, Shuqin
  • Jia, Shuai

Abstract

This paper studies an order fulfilment problem in an e-tailing environment, where the e-tailer fulfills orders by assigning orders to its fulfilment centers and routing the shipments from the fulfilment centers to its delivery stations. We develop a mixed integer program for the problem, analyze its computational complexity, and propose a Benders decomposition algorithm for solving the problem. Computational performance of the proposed algorithm is evaluated on problem instances generated based on the logistics network of JD.com in Shanghai. Computational results show that the Benders decomposition algorithm is able to achieve satisfactory performance within reasonable computation time.

Suggested Citation

  • Li, Shuqin & Jia, Shuai, 2019. "A Benders decomposition algorithm for the order fulfilment problem of an e-tailer with a self-owned logistics system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 463-480.
    • Handle: RePEc:eee:transe:v:122:y:2019:i:c:p:463-480
    DOI: 10.1016/j.tre.2018.12.007
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    2. Li, Guo & Zhang, Xuefeng & Liu, Mengqi, 2019. "E-tailer’s procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 108-127.
    3. Ihab K. A. Hamdan & Wulamu Aziguli & Dezheng Zhang & Eli Sumarliah, 2023. "Machine learning in supply chain: prediction of real-time e-order arrivals using ANFIS," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 549-568, March.
    4. Sun, Defeng & Meng, Ying & Tang, Lixin & Liu, Jinyin & Huang, Baobin & Yang, Jiefu, 2020. "Storage space allocation problem at inland bulk material stockyard," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).

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