DescriptionSupply and demand planning as well as logistics operations of e-groceries are highly complex. This is particularly the case for perishable food products as multiple trade-offs between costs, quality, service level and food waste exist in such operations. As a result, the choice of the delivery policy may result in various effects on cost, availability, food waste and delivered food quality. As providers have to consider a wide range of influencing factors such as operation costs, supply and demand variability, customer convenience and service quality jointly, decision making is challenging. To facilitate sustainable e-grocery operations, this work introduces a system dynamic model to support evaluating innovative distribution policies. The impact on food waste and quality due to varying picking strategies (i.e., in-store or central warehouse picking) and last-mile distribution options (e.g., home deliveries or click & collect concepts) is considered. It enables decision makers to investigate various last mile distribution policies within the scope of e-grocery operations to facilitate a reduction in food waste. The model shows trade-offs of the considered last-mile distribution policies on customer convenience, food decay, availability, service quality and operation costs on a generic level. Moreover, it highlights the interdependencies within the system of the considered policies. As a result, a better understanding of managerial implications with a focus on food waste is facilitated and future implementations of e-grocery distribution policies are supported.
Keywords: E-Groceries; System Dynamics; Decision Support; Retail Logistics; Home Delivery; Food Waste
|Period||25 Feb 2020 → 28 Feb 2020|
|Event title||Twenty-first International Working Seminar on Production Economics|
|Degree of Recognition||National|