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Coordinated Delivery to Shopping Malls with Limited Docking Capacity

Author

Listed:
  • Ruidian Song

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Hoong Chuin Lau

    (School of Computing and Information Systems, Singapore Management University, Singapore 178902, Singapore)

  • Xue Luo

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Lei Zhao

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

Abstract

Shopping malls are densely located in major cities such as Singapore and Hong Kong. Tenants in these shopping malls generate a large number of freight orders to their contracted logistics service providers, who independently plan their own delivery schedules. These uncoordinated deliveries and limited docking capacity jointly cause congestion at the shopping malls. A delivery coordination platform centrally plans the vehicle routes for the logistics service providers and simultaneously schedules the dock time slots at the shopping malls for the delivery orders. Vehicle routing and dock scheduling decisions need to be made jointly against the backdrop of travel time and service time uncertainty and subject to practical operations rules. We model this problem as a two-stage stochastic mixed integer program, develop an adaptive large neighborhood search algorithm that approximates the second stage recourse function using various sample sizes, and examine the associated in-sample and out-of-sample stability. Our numerical study on a testbed of instances based on real data in Singapore demonstrates the value of coordination and the value of stochastic solutions.

Suggested Citation

  • Ruidian Song & Hoong Chuin Lau & Xue Luo & Lei Zhao, 2022. "Coordinated Delivery to Shopping Malls with Limited Docking Capacity," Transportation Science, INFORMS, vol. 56(2), pages 501-527, March.
    • Handle: RePEc:inm:ortrsc:v:56:y:2022:i:2:p:501-527
    DOI: 10.1287/trsc.2021.1109
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