Vehicle Routing Problem For Express Delivery In Online-To-Offline Retail – A Case Study Of Cosmetic Industry

Abstract

The rise of innovative technologies that enable seamless information gathering and efficient communication between customers and online-to-offline (O2O) retailers has brought about new complexities in devising strategies to meet the demands of real-time, immediate delivery of online orders. This paper focuses on optimizing the delivery system by using a Capacitated Vehicle Routing Problem with Time Windows (CVRPTW) for Hasaki Beauty & Clinic, a cosmetic industry retailer in Ho Chi Minh City. By leveraging these methods, including Mixed-Integer Linear Programming (MILP), the proposed model achieves state-of-the-art results when evaluated against benchmark VRP datasets. Through a comprehensive evaluation utilizing a case study of Hasaki Beauty & Clinic, the study assesses the effectiveness of the proposed model. The results offer valuable insights into enhancing transportation logistics in the cosmetic industry, resulting in improved order fulfillment, cost-efficiency, and overall customer satisfaction.