A system and method are disclosed that optimally ships items to minimize costs. The method includes receiving by the system an order for the items to be packaged. The system determines various parameters for the order, to provide a parcel recommendation to a packer, which may include determining a possible carrier and rate structure, dimensions, number of items, location, weight of the items, etc. The system uses a suitable optimization model to minimize cost of shipping. The optimization output may be order dimensions including size and weight, and carrier for each package. The system then instructs the packer to pack the items based on linear optimization. The optimally packed items are sent to the carrier. Thus, the system and method reduce shipping costs by optimizing package weight and choice of carrier along with the rate structure for each carrier.

KEYWORDS: parcel weight optimization, parcel rate structure, multiple carriers, e-commerce delivery

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.