Publication: A location-routing problem for the conversion to the "click-and-mortar" retailing: the static case
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KU-Authors
KU Authors
Co-Authors
Altınkemer, Kemal
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Embargo Status
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Abstract
The static conversion from brick-and-mortar retailing to the hybrid click-and-mortar business model is studied from the perspective of distribution logistics. Retailers run warehouses and brick-and-mortar stores to meet the demand of their walk-in customers. When they decide to operate on the Web as an e-tailer, also click-and-mortar stores are needed which can serve both walk-in and online customers. While the distance between home and the nearest open store is used as a proxy measure for walk-in customers, a quality of service (QoS) guarantee for online customers is timely delivery of their orders. We describe and solve a static location-routing based problem for companies that embrace the clicks-and-bricks strategy in their retail operations. An augmented Lagrangian relaxation method embedded in a subgradient optimization procedure generates lower bounds, whereas a heuristic method finds feasible solutions. The performance of the Lagrangian-based solution method is tested on a number of randomly generated test problems.
Source
Publisher
Elsevier
Subject
Management, Operations research and management science
Citation
Has Part
Source
European Journal of Operational Research
Book Series Title
Edition
DOI
10.1016/j.ejor.2007.01.048