Multi-item Online Order Fulfillment in a Two-Layer Network
成果类型：
Article
署名作者：
Zhao, Yanyang; Wang, Xinshang; Xin, Linwei
署名单位：
University of Chicago; Alibaba Group
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.2022.0100
发表日期：
2025
关键词：
摘要：
The global e-commerce boom has driven rapid expansion of fulfillment infrastructure, with e-retailers building more warehouses to offer faster deliveries. However, fulfillment costs have surged over the past decade. This paper addresses the problem of minimizing these costs, where an e-retailer must decide in real time which warehouse(s) will fulfill each order, considering inventory constraints. Orders can be split among warehouses at an additional cost. We focus on a regional distribution center (RDC)-front distribution center (FDC) distribution network used by major e-retailers, which consists of larger RDCs and smaller FDCs. We analyze the performance of a simple myopic policy that selects the least expensive fulfillment option for each order without considering future impacts. We provide theoretical bounds on the performance ratio of the myopic policy compared with an optimal clairvoyant policy and demonstrate the strengths of the myopic policy within this two-layer network.