Optimization of goods relocation in urban store networks with an incentive strategy

Abstract Nowadays, goods are relocated daily among urban fashion stores by van or truck. This relocation activity generates externalities in urban areas that cause deterioration in the quality of life of their citizens. Innovative strategies based on a sharing approach promise solutions to reduce th...

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Main Authors: Bartolomeo Silvestri, Michele Roccotelli, Raffaello Pio Iavaniglio, Luigi Ranieri
Format: Article
Language:English
Published: Wiley 2021-03-01
Series:IET Collaborative Intelligent Manufacturing
Subjects:
Online Access:https://doi.org/10.1049/cim2.12011
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author Bartolomeo Silvestri
Michele Roccotelli
Raffaello Pio Iavaniglio
Luigi Ranieri
author_facet Bartolomeo Silvestri
Michele Roccotelli
Raffaello Pio Iavaniglio
Luigi Ranieri
author_sort Bartolomeo Silvestri
collection DOAJ
description Abstract Nowadays, goods are relocated daily among urban fashion stores by van or truck. This relocation activity generates externalities in urban areas that cause deterioration in the quality of life of their citizens. Innovative strategies based on a sharing approach promise solutions to reduce the use of heavy, polluting vehicles and therefore the related externalities in urban areas. The authors aim to optimise the relocation activity of city fashion stores through a customer‐involved incentive mechanism. The method provides store shopping vouchers to loyal customers as a reward for package delivery from one shop to another. If no customers agree to participate in the delivery game, company relocation staff will perform the delivery service. The benefit of the proposed delivery game is twofold—it increases customer loyalty and reduces the externalities produced by heavy vehicles moving through the city. To this end, two integer linear programming problems are formalised to optimise goods relocation activity with package deliveries (1) by company staff only and (2) by loyal customers in an incentive game. A simulation case study is presented to show the application of the methodology in fashion stores.
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spelling doaj.art-0dba22bcc8c5430bb430e29019298da82022-12-22T04:37:07ZengWileyIET Collaborative Intelligent Manufacturing2516-83982021-03-0131132210.1049/cim2.12011Optimization of goods relocation in urban store networks with an incentive strategyBartolomeo Silvestri0Michele Roccotelli1Raffaello Pio Iavaniglio2Luigi Ranieri3Department of Electrical and Information Engineering Polytechnic University of Bari Bari ItalyDepartment of Electrical and Information Engineering Polytechnic University of Bari Bari ItalyDepartment of Mechanics Polytechnic University of Bari Bari ItalyDepartment of Innovation Engineering University of Salento Lecce ItalyAbstract Nowadays, goods are relocated daily among urban fashion stores by van or truck. This relocation activity generates externalities in urban areas that cause deterioration in the quality of life of their citizens. Innovative strategies based on a sharing approach promise solutions to reduce the use of heavy, polluting vehicles and therefore the related externalities in urban areas. The authors aim to optimise the relocation activity of city fashion stores through a customer‐involved incentive mechanism. The method provides store shopping vouchers to loyal customers as a reward for package delivery from one shop to another. If no customers agree to participate in the delivery game, company relocation staff will perform the delivery service. The benefit of the proposed delivery game is twofold—it increases customer loyalty and reduces the externalities produced by heavy vehicles moving through the city. To this end, two integer linear programming problems are formalised to optimise goods relocation activity with package deliveries (1) by company staff only and (2) by loyal customers in an incentive game. A simulation case study is presented to show the application of the methodology in fashion stores.https://doi.org/10.1049/cim2.12011customer satisfactiongame theorygoods distributionincentive schemesinteger programminglinear programming
spellingShingle Bartolomeo Silvestri
Michele Roccotelli
Raffaello Pio Iavaniglio
Luigi Ranieri
Optimization of goods relocation in urban store networks with an incentive strategy
IET Collaborative Intelligent Manufacturing
customer satisfaction
game theory
goods distribution
incentive schemes
integer programming
linear programming
title Optimization of goods relocation in urban store networks with an incentive strategy
title_full Optimization of goods relocation in urban store networks with an incentive strategy
title_fullStr Optimization of goods relocation in urban store networks with an incentive strategy
title_full_unstemmed Optimization of goods relocation in urban store networks with an incentive strategy
title_short Optimization of goods relocation in urban store networks with an incentive strategy
title_sort optimization of goods relocation in urban store networks with an incentive strategy
topic customer satisfaction
game theory
goods distribution
incentive schemes
integer programming
linear programming
url https://doi.org/10.1049/cim2.12011
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AT raffaellopioiavaniglio optimizationofgoodsrelocationinurbanstorenetworkswithanincentivestrategy
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