Developing vehicle routing and outbound fulfillment systems for an E-grocery company
Name
458585668-MIT.pdf
Description
Full printable version
Size
18.22 MB
Format
Adobe PDF
Checksum (MD5)
803b82203f90003ff2c8ae3b054d103c
Author(s)
Barker, Nicholas (Nicholas Abraham)
Advisor(s)
Daniel Whitney and Donald Rosenfield.
Date Issued
2009
Publisher
Massachusetts Institute of Technology
Abstract
This paper outlines areas for improvement within the outbound fulfillment network of an emerging online grocery ("e-grocery") company offering home delivery to the customer. In particular, the research focuses on developing an efficient, scalable home delivery network, as a result of the known challenges and relatively high fulfillment costs associated with this business model. Last-mile home delivery accounts for a substantial portion of total e-grocery fulfillment costs. The Vehicle Routing Problem (VRP), a well-known NP-hard combinatorial optimization problem, is examined in the context of e-grocery and its impact on last-mile delivery costs. The paper emphasizes an integration of scalable vehicle routing systems with efficient order fulfillment operations. Practical analytical approaches, as well as new case experiments, serve as a framework of recommendations for an emerging e-grocer or similar last-mile delivery provider. The paper presents analysis using a real case study, serving as a basis for example, as well as more broad recommendations in the field. Moreover, it directs the reader to a wealth of literature in the fields of logistics, grocery fulfillment operations and the VRP class.
Description
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2009.
Includes bibliographical references (p. 60-61).
Subjects
Sloan School of Management.
Mechanical Engineering.
Leaders for Manufacturing Program.
MIT Department
Leaders for Manufacturing Program at MIT
Massachusetts Institute of Technology. Department of Mechanical Engineering
Sloan School of Management
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