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Bulky items delivery process optimization using simulation and GIS

(2023)

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Paixão_691210_2023.pdf
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Abstract
Driven by technological advancements, consumers demand instant access to information, products, and services. In response, retail firms are compelled to refine their operations and structures to meet these demands continually. Failure to do so could render them vulnerable to more agile competitors better equipped to fulfill consumer expectations. In this context, Worten, a Portuguese retail company, recognized the significance of adapting its supply chain to meet evolving customer expectations, especially in last-mile services. In this sense, following the strategic emphasis on improving the delivery process for bulky items, the company's proposed challenge was to study the impact of this system’s different configurations on the overall success and efficiency of bulky items’ last-mile distribution process. First, a comprehensive literature review covered concepts of retailing and its operations, the definition of value and success for consumers and organizations, and routing modules and simulation models. Subsequently, drawing from the insights gathered from the literature, a methodology was formulated. This methodology’s final module is a stochastic simulation model developed in the software AnyLogic, which intends to replicate the distribution process for bulky items, specifically for televisions. This model uses the ongoing pilot project, a collaboration with a specialized carrier, as its baseline scenario. Using this methodology, strategies and scenarios of distribution configurations were evaluated, with the performance being assessed using two critical indicators: on-time and late delivery rates. Furthermore, three supplementary metrics were included to assess the causes of failed deliveries. In conclusion, the study's findings and recommendations for future work are provided.

Citations

Paixão, M. (2023). Bulky items delivery process optimization using simulation and GIS. https://dial-mem.test.bib.ucl.ac.be/handle/2078.2/36561