Optimal delivery service strategy for Internet shopping with time-dependent consumer demand

This study attempts to optimize a delivery service strategy for Internet shopping by considering time-dependent consumer demand, demand–supply interaction and consumer socioeconomic characteristics. A nonlinear mathematical programming model is formulated for solving the optimal number and duration...

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Bibliographic Details
Published in:Transportation research. Part E, Logistics and transportation review Logistics and transportation review, 2006-11, Vol.42 (6), p.473-497
Main Authors: Hsu, Chaug-Ing, Li, Hui-Chieh
Format: Article
Language:English
Subjects:
Demand–supply interaction
Electronic commerce
Internet shopping
Internet shopping Time-dependent consumer demand Logistics cost Demand-supply interaction
Logistics
Logistics cost
Mathematical programming
Studies
Supply & demand
Time-dependent consumer demand
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Summary:This study attempts to optimize a delivery service strategy for Internet shopping by considering time-dependent consumer demand, demand–supply interaction and consumer socioeconomic characteristics. A nonlinear mathematical programming model is formulated for solving the optimal number and duration of service cycles for discriminating strategy by maximizing profit subject to demand–supply interaction. An example is employed to demonstrate the application of the model. Results suggest that discriminating service strategy is a better strategy in response to time-dependent consumer demand than uniform strategy. Finally, the proposed model is demonstrated to yield more profit than models that do not consider variations in consumer demand or demand–supply interaction.
ISSN:1366-5545
1878-5794
DOI:10.1016/j.tre.2005.03.007