A model-based approach to strategic demand management for attended home delivery

Waßmuth, Katrin ; Agatz, Niels ; Fleischmann, Moritz

Document Type: Conference presentation
Year of publication: 2022
Conference title: Euro 2022
Location of the conference venue: Espoo, Finland
Date of the conference: 03.-06.06.2022
Related URLs:
Publication language: English
Institution: Business School > ABWL u. Logistik (Fleischmann 2009-)
Subject: 330 Economics
Abstract: In recent years, e-commerce is continuously growing and new business models and services are entering the home delivery market. For example, in the case of e-grocery, on-demand startups promise ’instant’ grocery delivery within a few minutes. This innovative service offering challenges many assumptions of existing fulfillment strategies. In this talk, we focus on attended home delivery, where the service provider and customer typically agree on a specific time window to ensure a successful delivery of the purchased goods. This step involves the customer directly in the service creation process. In managing the service offering, service providers thus face complex trade-offs between customer preferences and the efficiency of service execution. These trade-offs drive demand management decisions on various levels, from strategic design decisions to operational real-time control. While prescriptive analytics methods have been frequently applied to optimize demand management decisions on the operational and tactical level, model-based approaches for strategic service design are scarce to date. In this talk, we present new ideas on how to apply prescriptive analytics to strategic demand management in order to profitably capture the demand potential for attended home delivery services.

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