Delivery service order policy with the sharing economy concept using a discrete event simulation system

Abstract

People's lifestyle, especially in shopping, has shifted from offline shopping, such as in supermarkets, traditional markets, stalls, and so on, to online shopping. Therefore, online business (e-commerce) has increased, resulting in a surge in the business potential of freight forwarder companies. When there is an increase in demand for the delivery of goods by sellers to consumers, companies need to make adjustments to improve their performance. This paper proposed the sequence of goods delivery services for XYZ companies by considering dynamic requests and conditions that vary discretely over time. This paper is based on a case company in Bandung, Indonesia. The method employed queuing models and discrete event simulations using hypothetical data with performance criteria to minimize the total cost of shipping goods. Simulations are carried out using one courier and one zone to compare customer service determination algorithms, namely first-come, first-served, proximity, and predictive control models. The simulation results show that the proximity algorithm produces a minimum total cost of Rp 1,785,749, the smallest cost compared to using first-come, first-served and predictive control models, respectively IDR 2,782,389, and IDR 2,639,291. Then, the Annova test was conducted, which provided information that one policy differed significantly from another, and a Turkey test was carried out, showing that the proximity algorithm produces better performance than other algorithms. The contribution of this paper is to present that the delivery service employed by the company provided a minimum total cost.