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Keywords = omnichannel grocery retailing

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16 pages, 1096 KiB  
Article
The Buy-Online-Pick-Up-in-Store Retailing Model: Optimization Strategies for In-Store Picking and Packing
by Nicola Ognibene Pietri, Xiaochen Chou, Dominic Loske, Matthias Klumpp and Roberto Montemanni
Algorithms 2021, 14(12), 350; https://doi.org/10.3390/a14120350 - 30 Nov 2021
Cited by 14 | Viewed by 5287
Abstract
Online shopping is growing fast due to the increasingly widespread use of digital services. During the COVID-19 pandemic, the desire for contactless shopping has further changed consumer behavior and accelerated the acceptance of online grocery purchases. Consequently, traditional brick-and-mortar retailers are developing omnichannel [...] Read more.
Online shopping is growing fast due to the increasingly widespread use of digital services. During the COVID-19 pandemic, the desire for contactless shopping has further changed consumer behavior and accelerated the acceptance of online grocery purchases. Consequently, traditional brick-and-mortar retailers are developing omnichannel solutions such as click-and-collect services to fulfill the increasing demand. In this work, we consider the Buy-Online-Pick-up-in-Store concept, in which online orders are collected by employees of the conventional stores. As labor is a major cost driver, we apply and discuss different optimizing strategies in the picking and packing process based on real-world data from a German retailer. With comparison of different methods, we estimate the improvements in efficiency in terms of time spent during the picking process. Additionally, the time spent on the packing process can be further decreased by applying a mathematical model that guides the employees on how to organize the articles in different shopping bags during the picking process. In general, we put forward effective strategies for the Buy-Online-Pick-up-in-Store paradigm that can be easily implemented by stores with different topologies. Full article
(This article belongs to the Special Issue Mathematical Models and Their Applications III)
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