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Urban Network Design with Ship-from Store

Author

Listed:
  • Imen Ben Mohamed

    (EM - EMLyon Business School)

  • Walid Klibi

    (Kedge Business School [Talence])

  • Florian Bertrand

    (Kedge Business School [Talence])

Abstract

To meet the increasing demand for tight responsiveness requirements, we introduce the urban fulfillment network design problem with the ship-from-store option under uncertainty. The problem builds on the two-echelon distribution structure by integrating stores as an intermediate layer to fulfill and deliver online orders. The problem involves decisions on fulfillment setup and logistics service provider (LSP) plan from selected stores while anticipating the revenues and costs induced by order fulfillment, delivery, store replenishment, and inventory holding. To model this problem while considering the uncertain nature of multi-item online orders, in-store demand, and capacities, a two-stage stochastic program with mixed-integer recourse is developed. An integer L-shaped based-decomposition solution approach integrated with scenario sampling is proposed. Numerical results, inspired by a retailer's real-world case study, are conducted to validate our model and to evaluate the efficiency of our solution approach.

Suggested Citation

  • Imen Ben Mohamed & Walid Klibi & Florian Bertrand, 2024. "Urban Network Design with Ship-from Store," Post-Print hal-05777375, HAL.
    • Handle: RePEc:hal:journl:hal-05777375
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