2024
Authors
Neves Moreira, F; Amorim, P;
Publication
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Abstract
Omnichannel retailers are reinventing stores to meet the growing demand of the online channel. Several retailers now use stores as supporting distribution centers to offer quicker Buy-Online-Pickup-In-Store (BOPS) and Ship-From-Store (SFS) services. They resort to in-store picking to serve online orders using existing assets. However, in-store picking operations require picker carts traveling through store aisles, competing for store space, and possibly harming the offline customer experience. To learn picking policies that acknowledge interactions between pickers and offline customers, we formalize a new problem called Dynamic In-store Picker Routing Problem (diPRP). This problem considers a picker that tries to pick online orders (seeking) while minimizing customer encounters (hiding) - preserving the offline customer experience. We model the problem as a Markov Decision Process (MDP) and solve it using a hybrid solution approach comprising mathematical programming and reinforcement learning components. Computational experiments on synthetic instances suggest that the algorithm converges to efficient policies. We apply our solution approach in the context of a large European retailer to assess the proposed policies regarding the number of orders picked and customers encountered. The learned policies are also tested in six different retail settings, demonstrating the flexibility of the proposed approach. Our work suggests that retailers should be able to scale the in-store picking of online orders without jeopardizing the experience of offline customers. The policies learned using the proposed solution approach reduced the number of customer encounters by up to 50%, compared to policies solely focused on picking orders. Thus, to pursue omnichannel strategies that adequately trade-off operational efficiency and customer experience, retailers cannot rely on actual simplistic picking strategies, such as choosing the shortest possible route.
2025
Authors
Lunet, M; Fernandes, D; Moreira, FN; Amorim, P;
Publication
Proceedings of the Genetic and Evolutionary Computation Conference, GECCO 2025, NH Malaga Hotel, Malaga, Spain, July 14-18, 2025
Abstract
To get products delivered, clients and retailers agree on a delivery time window. We collaborated with an online retailer to develop a real-world application aimed at dynamically determining the delivery fee for each time window while ensuring the explainability of the pricing policy. This sequential decision-making problem arises as new customers continuously arrive. The objective is to maximize the final profit, given by the sum of baskets and delivery fees, discounted by the transportation and fleet costs. As multiple customers share the same delivery route, the costs are distributed among them, complicating the calculation of the marginal cost of each customer. Our study employs Genetic Programming (GP) to create explainable and easy-to-compute pricing policies to determine the delivery fees. These policies, expressed as mathematical formulas, rank price panels - combinations of time slots and corresponding fees - to identify optimal prices for each customer. The inputs to the GP algorithm capture the current state of the system, including factors such as capacity, customer location, and basket value. The resulting expressions offer operational managers a transparent pricing policy that allows them to maximize total profit. © 2025 Elsevier B.V., All rights reserved.
2025
Authors
Gomes, R; Marques, A; Neves-Moreira, F; Netto, CA; Silva, RG; Amorim, P;
Publication
PROCESSES
Abstract
The sustainable utilization of forest biomass for bioenergy production is increasingly challenged by the variability and unpredictability of raw material availability. These challenges are particularly critical in regions like Central Portugal, where seasonality, dispersed resources, and wildfire prevention policies disrupt procurement planning. This study investigates two flexibility strategies-dynamic network reconfiguration and operations postponement-as policy relevant tools to enhance resilience in forest-to-bioenergy supply chains. A novel mathematical model, the mobile Facility Location Problem with dynamic Operations Assignment (mFLP-dOA), is proposed and solved using a scalable matheuristic approach. Applying the model to a real case study, we demonstrate that incorporating temporary intermediate nodes and adaptable processing schedules can reduce costs by up to 17% while improving operational responsiveness and reducing non-productive machine time. The findings offer strategic insights for policymakers, biomass operators, and regional planners aiming to design more adaptive and cost-effective biomass supply systems, particularly under environmental risk scenarios such as summer operation bans. This work supports evidence-based planning and investment in flexible logistics infrastructure for cleaner and more resilient bioenergy supply chains.
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