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Inductive research in last-mile delivery routing: Introducing the Re-Gifting heuristic
Authors:William J. Rose  John E. Bell  Stanley E. Griffis
Affiliation:1. Department of Supply Chain Management, Debbie and Jerry Ivy College of Business, Iowa State University, Ames, Iowa, USA;2. Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, Tennessee, USA;3. Department of Supply Chain Management, Eli Broad College of Business, Michigan State University, East Lansing, Michigan, USA
Abstract:The last-mile problem presents a daunting challenge for many logistics service providers, especially some 7000 small, localized operations for whom the cost of complex software solutions is often prohibitive. As a result, last-mile dispatchers rely on simple heuristics to ensure adequate customer service at an acceptable cost. This research effort extends prior qualitative work by developing and testing a simple vehicle routing heuristic, based on behaviors observed in practice, that prioritizes customer service over cost against other simple vehicle routing heuristics across a variety of environments using simulation. The results support the inclusion of a customer service focus in vehicle routing and the addition of such heuristics to existing algorithm portfolios, specifically in urban areas with well-developed highway systems.
Keywords:final mile logistics  heuristic development  inductive research  urban logistics  vehicle routing
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