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Alibaba Vehicle Routing Algorithms Enable Rapid Pick and Delivery

Author

Listed:
  • Haoyuan Hu

    (Cainiao Network, Hangzhou, Zhejiang 311100, China)

  • Ying Zhang

    (Cainiao Network, Hangzhou, Zhejiang 311100, China)

  • Jiangwen Wei

    (Cainiao Network, Hangzhou, Zhejiang 311100, China)

  • Yang Zhan

    (Cainiao Network, Hangzhou, Zhejiang 311100, China)

  • Xinhui Zhang

    (Alibaba Group, Hangzhou, Zhejiang 310052, China)

  • Shaojian Huang

    (Alibaba Group, Hangzhou, Zhejiang 310052, China)

  • Guangrui Ma

    (Alibaba Group, Hangzhou, Zhejiang 310052, China)

  • Yuming Deng

    (Alibaba Group, Hangzhou, Zhejiang 310052, China)

  • Siwei Jiang

    (Lazada Group, Singapore 068811)

Abstract

Alibaba Group pioneered integrated online and offline retail models to allow customers to place online orders of e-commerce and grocery products at its participating stores or restaurants for rapid delivery—in some cases, in as little as 30 minutes after an order has been placed. To meet these service commitments, quick online routing decisions must be made to optimize order picking routes at warehouses and delivery routes for drivers. The solutions to these routing problems are complicated by stringent service commitments, uncertainties, and complex operations in warehouses with limited space. Alibaba has developed a set of algorithms for vehicle routing problems (VRPs), which include an open-architecture adaptive large neighborhood search to support the solution of variants of routing problems and a deep learning-based approach that trains neural network models offline to generate almost instantaneous solutions online. These algorithms have been implemented to solve VRPs in several Alibaba subsidiaries, have generated more than $50 million in annual financial savings, and are applicable to the broader logistics industry. The success of these algorithms has fermented an inner-source community of operations researchers within Alibaba, boosted the confidence of the company’s executives in operations research, and made operations research one of the core competencies of Alibaba Group.

Suggested Citation

  • Haoyuan Hu & Ying Zhang & Jiangwen Wei & Yang Zhan & Xinhui Zhang & Shaojian Huang & Guangrui Ma & Yuming Deng & Siwei Jiang, 2022. "Alibaba Vehicle Routing Algorithms Enable Rapid Pick and Delivery," Interfaces, INFORMS, vol. 52(1), pages 27-41, January.
    • Handle: RePEc:inm:orinte:v:52:y:2022:i:1:p:27-41
    DOI: 10.1287/inte.2021.1108
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    References listed on IDEAS

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    Cited by:

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    2. Zhang, Bo & Hassini, Elkafi & Zhou, Yun & Zhao, Meng & Hu, Xiangpei, 2025. "Integrated differentiated time slot pricing and order dispatching with uncertain customer demand in on-demand food delivery," European Journal of Operational Research, Elsevier, vol. 323(2), pages 471-489.
    3. Yinhu Wang & Ye Chen & Ilya O. Ryzhov & Xiaoyue Cathy Liu & Nikola Marković, 2024. "Improving Snowplowing Operations in Utah Through Optimization and Visualization," Interfaces, INFORMS, vol. 54(6), pages 471-486, November.
    4. Yi Wang & Yafei Yang & Zhaoxiang Qin & Yefei Yang & Jun Li, 2023. "A Literature Review on the Application of Digital Technology in Achieving Green Supply Chain Management," Sustainability, MDPI, vol. 15(11), pages 1-18, May.

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