A three-phase matheuristic for the Packaging and Shipping Problem

Abstract

• Introduction and modeling of the Packaging and Shipping Problem motivated by a real-life e-commerce application. • Design of a three-phase matheuristic to efficiently tackle the Packaging and Shipping Problem. • Computational comparison with a state-of-the art commercial solver. E-commerce has been continuously growing in the last years to a primary retail market. Recently in France, the threshold of 1 billion of online transactions was overcome. Due to a high demand fluctuation of e-commerce, the workforce sizing for the logistic chain is a challenging problem. Companies have to develop good strategies to have a sustainable workforce size while guaranteeing a high-level service. In this paper, we consider the management of the workforce for a warehouse of an e-commerce company. Specifically, we address issues as i) How the workforce at the warehouse can be determined; ii) What is the daily operational production planning; iii) How the demand peaks can be smoothed, and the production maintained ideally constant over the time horizon. To provide answers to these issues, we introduce the Packaging and Shipping Problem (PSP). The PSP looks for a solution approach that jointly determines the workforce over a multi-period horizon and daily operational plans while minimizing the total logistics cost. We consider two strategies that aim to enhance the flexibility of the process and the efficiency of resources use: reassignment and postponement . To tackle the Packaging and Shipping Problem we propose a model, and a three-phase matheuristic. This heuristic is proved to be competitive with respect to the direct solution of the model with a commercial solver on real-life based instances.