One needs to pay attention to the links Gad embedded in the post. For example, https://www.bottomless.com/landing.html coffee is a fascinating example of an AI-enabled personalized EOQ model.
I guess the instant delivery would have to come with a higher price tag, as opposed to batch delivery which could gain delivery efficiency and provide a lower price point. I worked on this tradeoff in http://ssrn.com/abstract=3675063 by allowing the price to be endogenized.
If the marginal cost of "instant" delivery could be pushed low enough (with delivery drones, for example), that might not have to be the case. Along those lines, what if households owned the drone and could just send it to the micro-warehouse?
Ming, in your paper, the couriers are the bottleneck and source of delivery cost and customer wait times, and if they were removed, the Dedicated strategy would win more.
Also, another form of temporal pooling is pre-scheduling orders/deliveries so that the pooling delivery strategy could be used to reduce cost, but short delivery time windows could also be achieved (maybe this approach is the "hybrid")
Agree. Moreover, if the on-demand capacity can be a decision variable, the dedicated instant delivery system could install more capacity, while charging a higher price to compensate for the high cost at the same time.
One needs to pay attention to the links Gad embedded in the post. For example, https://www.bottomless.com/landing.html coffee is a fascinating example of an AI-enabled personalized EOQ model.
I guess the instant delivery would have to come with a higher price tag, as opposed to batch delivery which could gain delivery efficiency and provide a lower price point. I worked on this tradeoff in http://ssrn.com/abstract=3675063 by allowing the price to be endogenized.
If the marginal cost of "instant" delivery could be pushed low enough (with delivery drones, for example), that might not have to be the case. Along those lines, what if households owned the drone and could just send it to the micro-warehouse?
Ming, in your paper, the couriers are the bottleneck and source of delivery cost and customer wait times, and if they were removed, the Dedicated strategy would win more.
Also, another form of temporal pooling is pre-scheduling orders/deliveries so that the pooling delivery strategy could be used to reduce cost, but short delivery time windows could also be achieved (maybe this approach is the "hybrid")
Agree. Moreover, if the on-demand capacity can be a decision variable, the dedicated instant delivery system could install more capacity, while charging a higher price to compensate for the high cost at the same time.
Recent news on Uber Eats partnership with GoPuff: https://www.pymnts.com/news/delivery/2021/uber-eats-links-with-gopuff-for-convenience-store-delivery/