A method is disclosed, that optimizes a fulfillment operation for e-commerce retailers that deliver orders to final consumers. The method changes the injection and pack cutoffs dynamically in response to day-to-day fluctuations in customer volume. To optimize the fulfillment operation, a dynamic injection cutoff logic is implemented. The pack cutoffs are configured to continually move earlier in a given day, taking into account the total routing mileage for orders due for delivery on that day. A dynamic injection cutoff logic is executed, to calculate the injection cutoff. For an injection cutoff that is within the lock-in injection cutoff, the injection, pack, and order cutoffs are set dynamically. The method is implemented as an application in the server of the online shopping service provider. The method maximizes the availability of a required service level agreement (SLA) such as same day, overnight delivery, etc. for customers while maximizing on-time delivery for retailers.

KEYWORDS: e-commerce, online shopping, fulfillment operation, service level agreement

Creative Commons License

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