Splitting Shopping and Delivery Tasks in an On-Demand Personal Shopper Service

23 Pages Posted: 31 Jul 2019

See all articles by Alp Arslan

Alp Arslan

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Niels Agatz

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Mathias Klapp

Pontifical Catholic University of Chile

Date Written: July 30, 2019

Abstract

We introduce a personal shopper service that offers the same-day delivery of products available at brick and mortar stores. Each customer request is placed online and could involve items from multiple stores. The operator of this service has to dynamically accept requests, coordinate a fleet of shoppers, schedule shopping operations at stores and execute deliveries of accepted requests to customers on time. Our work focuses on studying the benefits of splitting requests into smaller tasks served by different shoppers in parallel and consolidating tasks with a common shopping location into one store visit. We present and solve an online optimization model and empirically show that the percentage of requests served increases when request splitting is allowed. This benefit is mostly obtained due to an increased shopper utilization, reduced shopping times, and cheaper routing options available.

Keywords: personal shopper service, on-demand

Suggested Citation

Arslan, Alp and Agatz, Niels A.H. and Klapp, Mathias, Splitting Shopping and Delivery Tasks in an On-Demand Personal Shopper Service (July 30, 2019). ERIM Report Series. Available at SSRN: https://ssrn.com/abstract=3428912 or http://dx.doi.org/10.2139/ssrn.3428912

Alp Arslan (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Niels A.H. Agatz

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Mathias Klapp

Pontifical Catholic University of Chile ( email )

Av Libertador General Bernardo O'Higgins 340
Santiago, RegiĆ³n Metropolitana 8331150
Chile

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