flexibility

Pricing for Delivery Time Flexibility

Categories Dynamic Programming, Supply Chain Management, Transportation Tags , , , ,

We study a variant of the multi-period vehicle routing problem, in which a service provider offers a discount to customer in exchange for delivery flexibility. We establish theoretical properties and empirical insights regarding the intricate and complex relation between the benefit from additional delivery flexibility, the discounts offered to customers to gain additional delivery flexibility, … Read more

The Value of Flexibility in Robust Location-Transportation Problems

Categories Facility Planning and Design, Robust Optimization, Transportation Tags , , , , ,

This article studies a multi-period capacitated fixed-charge location-transportation problem in which, while the location and capacity of each facility need to be determined immediately, the determination of final production and distribution of products can be delayed until actual orders are received in each period. In contexts where little is known about future demand, robust optimization, … Read more