Assortment Allocation to Distribution Centers to Minimize Split Customer Orders

@inproceedings{Cataln2012AssortmentAT,
  title={Assortment Allocation to Distribution Centers to Minimize Split Customer Orders},
  author={Andr{\'e}s K. Rees Catal{\'a}n and Marshall L. Fisher},
  year={2012}
}
A split order in retail occurs whenever an order is fulfilled in more than one shipment. This entails additional costs to the retailer. In the context of electronic commerce retail, we study the problem of assigning stock-keeping units to distribution centers (DCs) to minimize split orders. We show that this problem is NP-hard, propose several heuristics and test them against other benchmark algorithms using actual transaction data from a Chinese online retailer. We evaluate the results of the… CONTINUE READING

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