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Optimal Delivery Time Guarantee Decision with Sale Price and Indemnity Cost-sensitive Delivery Time under Delivery Time-sensitive Demand

Published: 21 November 2023 Publication History

Abstract

The popularity of e-commerce has brought more attention of enterprises. By making a commitment of delivery time, enterprises can effectively attract customers. Based on the setting, from the perspective of a retailer facing the end customer, this study analyzes delivery time problem and constructs a mathematical model for seeking the retailer's optimal delivery time strategy. Combining the actual situation, the paper introduces the dependence of sale price and indemnity cost on delivery time into the model. A numerical example with sensitivity analysis is provided to obtain the retailer's optimal profit and delivery time guarantee.

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Arthur V. Hill, Julie M. Hays, and Eitan Naveh. 2000. A Model for Optimal Delivery Time Guarantees. Journal of Service Research. (February 2000), 2(3):254-264. https://doi.org/10.1177/109467050023003
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Si-si Zhao, Feng Wu, and Lei Shu. 2016 Optimal Promised Delivery Lead Time for E-Tailers with Delay Dependent Customer Returns.

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              cover image ACM Other conferences
              IMMS '23: Proceedings of the 2023 6th International Conference on Information Management and Management Science
              August 2023
              347 pages
              ISBN:9798400707681
              DOI:10.1145/3625469
              Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

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              Published: 21 November 2023

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              Author Tags

              1. Key words: delivery time guarantee
              2. genetic algorithm
              3. indemnity cost
              4. market share

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