Journal
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume 70, Issue -, Pages 205-224Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2014.06.007
Keywords
Grocery retailing; Store delivery; Retail operations; Planning interdependencies
Categories
Funding
- German retail foundation
- FMCG foundation
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This article focuses on the tactical problem of selecting delivery patterns according to which grocery stores are repetitively supplied with products from different order segments by retail-owned distribution centers. The research environment considered consists of logistics processes in DCs, transportation and instore logistics. We identify dependencies on the delivery patterns selected and specify the relevant costs. These costs are reflected in the objective function of a binary selection model. Implementing and applying the model to the real case of a major European retail company yields substantial cost savings potential of 5.3%, amounting to tens of millions of euros per annum. (C) 2014 Elsevier Ltd. All rights reserved.
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