On line shopping and logistics: a fast dynamic vehicle routing algorithm for dealing with information evolution

Online shopping has seen booms of orders in recent years. In online shopping, the orders are characterized by tight order-to-delivery lead times and the frequent and discrete arrival of orders. Online shopping has recently expanded into new sectors. Due to the pandemic, online grocery shopping showed a boom and the shift from physical grocery shopping to on line shopping is not expected to disappear with the pandemic end. This increases the number of online orders that should be delivered directly to customers. Online shopping is changing its characteristics: customers even more often pick up online orders in stores. This increases the number of online orders that need to be delivered to physical stores and places requirements on supply chains—especially in terms of speed and efficiency. Delivery at the time and place that is convenient to the consumer is one of the main issues for increasing customer satisfaction and therefore business efficiency. This study proposes an exact algorithm for solving a multi-constrained dynamic vehicle routing problem with a short execution time. The algorithm is therefore able to satisfy customer preferences, allowing for instance last minute changes in order lists and/or delivery addresses.