Integrated order splitting, allocation, and delivery problem with a synchronized truck and drone fleet

In this paper, we study the integrated order splitting, allocation, and delivery problem with a synchronized fleet of trucks and drones (OSADP-STD), a pervasive challenge in the online retail industry that presents significant operational complexities for retailers. By leveraging inventories spread across multiple geographi- cally distributed fulfillment centers, retailers use a fleet of trucks and drones to collaboratively fulfill customer orders, which may consist of one or multiple products. The successful execution of the OSADP-STD relies heavily on the strict coordination and synchronization of the fulfillment resources. We first present a mixed integer linear programming model for the OSADP-STD, which poses significant challenges in obtaining high- quality solutions within reasonable time. To tackle these challenges, we propose a heuristic based on adaptive large neighborhood search. We then validate the effectiveness of the proposed approach through extensive experiments. We finally present sensitivity analyses that demonstrate how the integrated fulfillment strategy can optimize order fulfillment performance, providing a more cost-effective solution and highlighting the key factors that influence a retailer’s fulfillment operations.