Optimal decision of multiobjective and multiperiod anticipatory shipping under uncertain demand: A data-driven framework

Anticipatory shipping helps to reduce the waiting time of online customers to receive their products. Present studies on anticipatory shipping mainly consider a single period and ignore the waiting time saved for customers. This paper develops a data-driven framework to investigate the multiperiod a...

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Bibliographic Details
Published in:Computers & industrial engineering Vol. 159; p. 107445
Main Authors: chen, Cheng, Xu, Xianhao, Zou, Bipan, Peng, Hongxia, Li, Zhiwen
Format: Journal Article
Language:English
Published: Elsevier Ltd 01.09.2021
Subjects:
Anticipatory shipping
Data-driven
Integer programming model
Multiobjective
Online retail
Anticipatory shipping
Multiobjective
Online retail
Data-driven
Integer programming model
ISSN:0360-8352, 1879-0550
Online Access:Get full text
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Summary:Anticipatory shipping helps to reduce the waiting time of online customers to receive their products. Present studies on anticipatory shipping mainly consider a single period and ignore the waiting time saved for customers. This paper develops a data-driven framework to investigate the multiperiod anticipatory shipping problem with the objectives of minimizing the cost of online retailers and maximizing the saved waiting time of customers. First, we propose a dual-process sales forecasting framework that employs five machine learning algorithms to forecast online retailers’ daily sales using clickstream data and historical sales data. Then, we build a multiperiod and multiobjective integer programming model based on the forecasting sales and forecasting errors to explore the optimal quantity and time of products of anticipatory shipping. Finally, using TOPSIS, Shannon entropy, and LINMAP decision-making methods, the final optimal solution is selected from the Pareto set obtained by the NSGA-II algorithm. The case study results show that anticipatory shipping saves 5.96% cost for the online retailer and 1.69 days of waiting time on average for the customer compared with non-anticipatory shipping. Moreover, performing anticipatory shipping is especially beneficial in the case of high inventory holding cost, large distribution center capacity, and long transportation duration.
ISSN:0360-8352
1879-0550
DOI:10.1016/j.cie.2021.107445