Building Trust in Home Services-Stochastic Team-Orienteering with Consistency Constraints

Yongjia Song; Marlin W. Ulmer; Barrett W. Thomas; Stein W. Wallace

doi:10.1287/trsc.2019.0927

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Building Trust in Home Services-Stochastic Team-Orienteering with Consistency Constraints

Journal article

Peer reviewed

Building Trust in Home Services-Stochastic Team-Orienteering with Consistency Constraints

Yongjia Song, Marlin W. Ulmer, Barrett W. Thomas and Stein W. Wallace

Transportation science, Vol.54(3), pp.823-838

05/01/2020

DOI: 10.1287/trsc.2019.0927

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Abstract

In this paper, we consider service applications where drivers serve subscription customers at their homes on a regular basis and at known times. To build trust with customers, the company requires that subscription customers are consistently served by the same driver. In addition to subscription customers, on-demand customers request delivery on a daily basis. For the company, the challenge is to consistently serve the subscription customers while simultaneously maximizing the daily profit from the on-demand customers. We model the problem as a two-stage stochastic decision problem. The first stage determines the assignment of drivers to subscription customers. The second stage is a team-orienteering problem with time windows and mandatory visits by fixed drivers. We present an anticipatory consistent customer assignment policy (ACCA) based on the multiple scenario approach framework. Our computational study shows that ACCA significantly outperforms consistency concepts from the literature, while increasing costs less than 5%.

Operations Research & Management Science

Science & Technology

Technology

Transportation

Transportation Science & Technology

Details

Title: Subtitle: Building Trust in Home Services-Stochastic Team-Orienteering with Consistency Constraints
Creators: Yongjia Song - Clemson University
Marlin W. Ulmer - Technische Universität Braunschweig
Barrett W. Thomas - University of Iowa
Stein W. Wallace - Norwegian School of Economics
Resource Type: Journal article
Publication Details: Transportation science, Vol.54(3), pp.823-838
Publisher: Informs
DOI: 10.1287/trsc.2019.0927
ISSN: 0041-1655
eISSN: 1526-5447
Number of pages: 16
Grant note: INFORMS Transportation Science and Logistics Society/EURO Working Group on Vehicle Routing and Logistics Cross-region Collaborative Grant
Language: English
Date published: 05/01/2020
Academic Unit: Bus Admin College; Business Analytics
Record Identifier: 9984380383102771

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