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Exact Approach for Integrated Delivery Optimization of E-Commerce and Online-to-Offline Parcels

Author

Listed:
  • Song Pu

    (School of Economics and Management, Chengdu Technological University, Chengdu 611730, P. R. China)

  • Chang Xia

    (School of Economics and Management, Chengdu Technological University, Chengdu 611730, P. R. China)

Abstract

This paper studies a novel form of last-mile delivery that combines delivery optimization of E-commerce and Online-to-Offline (O2O) parcels. While O2O parcels must first be picked up from O2O shops before being delivered to the appropriate customers, E-commerce parcels are delivered to customers from a predetermined number of depots. The goal is to use the same fleet of vehicles to provide integrated delivery services for various merchant types. We propose a branch-and-price algorithm based on the set partitioning formulation, where the pricing problem is solved by a label-setting algorithm. Several acceleration techniques including elementary path relaxation, ng-path relaxation and decremental space search are designed to speed up the price problem. Both the conventional dataset used in the literature and a real-world database with up to 75 clients are utilized to test the performance of the suggested method, demonstrating its efficacy.

Suggested Citation

  • Song Pu & Chang Xia, 2023. "Exact Approach for Integrated Delivery Optimization of E-Commerce and Online-to-Offline Parcels," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 40(03), pages 1-23, June.
    • Handle: RePEc:wsi:apjorx:v:40:y:2023:i:03:n:s0217595922500269
    DOI: 10.1142/S0217595922500269
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