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Data-driven customer acceptance for attended home delivery

Author

Listed:
  • Charlotte Köhler

    (European University Viadrina)

  • Ann Melissa Campbell

    (University of Iowa)

  • Jan Fabian Ehmke

    (Universität Wien)

Abstract

Home delivery services require the attendance of the customer during delivery. Hence, retailers and customers mutually agree on a delivery time window in the booking process. However, when a customer requests a time window, it is not clear how much accepting the ongoing request significantly reduces the availability of time windows for future customers. In this paper, we explore using historical order data to manage scarce delivery capacities efficiently. We propose a sampling-based customer acceptance approach that is fed with different combinations of these data to assess the impact of the current request on route efficiency and the ability to accept future requests. We propose a data-science process to investigate the best use of historical order data in terms of recency and amount of sampling data. We identify features that help to improve the acceptance decision as well as the retailer’s revenue. We demonstrate our approach with large amounts of real historical order data from two cities served by an online grocery in Germany.

Suggested Citation

  • Charlotte Köhler & Ann Melissa Campbell & Jan Fabian Ehmke, 2024. "Data-driven customer acceptance for attended home delivery," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 46(2), pages 295-330, June.
    • Handle: RePEc:spr:orspec:v:46:y:2024:i:2:d:10.1007_s00291-023-00712-4
    DOI: 10.1007/s00291-023-00712-4
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    References listed on IDEAS

    as
    1. Ann Melissa Campbell & Martin W. P. Savelsbergh, 2005. "Decision Support for Consumer Direct Grocery Initiatives," Transportation Science, INFORMS, vol. 39(3), pages 313-327, August.
    2. Xinan Yang & Arne K. Strauss & Christine S. M. Currie & Richard Eglese, 2016. "Choice-Based Demand Management and Vehicle Routing in E-Fulfillment," Transportation Science, INFORMS, vol. 50(2), pages 473-488, May.
    3. Ann Melissa Campbell & Martin Savelsbergh, 2006. "Incentive Schemes for Attended Home Delivery Services," Transportation Science, INFORMS, vol. 40(3), pages 327-341, August.
    4. Ehmke, Jan Fabian & Campbell, Ann Melissa, 2014. "Customer acceptance mechanisms for home deliveries in metropolitan areas," European Journal of Operational Research, Elsevier, vol. 233(1), pages 193-207.
    5. Robert Klein & Michael Neugebauer & Dimitri Ratkovitch & Claudius Steinhardt, 2019. "Differentiated Time Slot Pricing Under Routing Considerations in Attended Home Delivery," Service Science, INFORMS, vol. 53(1), pages 236-255, February.
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    8. Catherine Cleophas & Jan Ehmke, 2014. "When Are Deliveries Profitable?," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 6(3), pages 153-163, June.
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