MIT SCM Symposium 2024

The varying distances of customer locations from fulfillment centers and the diverse density of customer bases pose challenges in achieving service equity for Same-Day Delivery (SDD). Major SDD providers often prioritize operational profitability over equity across different neighborhoods in large cities. This capstone project aims to design a solution that assists SDD providers in preserving profitability while ensuring equitable planning of SDD routes. We propose dynamic policies that facilitate immediate decision-making regarding accepting or rejecting SDD orders. These policies are designed to help SDD providers grasp the implications of profitability by integrating equity factors into their operations. Using real-world data from the city of Vienna, our results indicate substantial enhancements in equity without significant compromise in profitability.