Order Fulfillment Decision under Multiwarehouse Collaborative Delivery

Aiming at the high cost of multicategory orders fulfillment under multiwarehouse collaborative distribution, comprehensively considering the fulfillment costs of different orders fulfillment strategies, an order fulfillment strategy selection model is proposed. The first step of the model uses the linear programming algorithm to solve the cost of suborder merge transportation after the order is split. The second step calculates the cost of the current “greedy algorithm” of the e-commerce platform for order split fulfillment. Then, the cost of each strategy is compared and the lowest cost one is chosen. The calculation example analysis shows that the order fulfillment strategy is closely related to the delivery location of the order and the SKU category. When the delivery location is far away and SKU categories are many in the order, the merged transportation strategy of suborders after the order is split will be significantly better than the cost of separate transportation. The multiwarehouse collaborative distribution fulfillment strategy proposed in this paper can provide a decision basis for the e-commerce platform to choose which fulfillment method.