Selecting Delivery Patterns for Grocery Chains

Abstract

On a tactical level retailers face the problem of determining on which weekdays stores should be delivered, and of setting a frame for short-term vehicle routing. We therefore propose a binary program that considers the decision-relevant costs and capacities at the distribution center, in transportation and instore. To resolve the trade-off between the different cost components aligned to the delivery pattern decision, we propose a sequential solution approach. A numerical example illustrates first results.