A Branch-and-Repair Method for Three-Dimensional Bin Selection and Packing in E-Commerce

Selecting a Parcel Type Portfolio to Reduce Unused Space in Transportation Wrongly sized parcels lead to unused space and inefficient transportation. With continuously increasing e-commerce and last-mile delivery volumes, available parcel types at a warehouse can significantly impact unused space that is transported. In “A Branch-and-Repair Method for Three-Dimensional Bin Selection and Packing in E-Commerce,” Fontaine and Minner solve the trade-off between cost of unused space and cost of parcel variety through optimizing the portfolio of available parcel types. To solve large instances with millions of binary decision variables, the authors develop an exact decomposition method that allows for relaxing many binary variables, improves branch-and-check by repairing infeasible solutions, and shows how to avoid solving many subproblems. A case study using real data shows the efficiency of the proposed method and the impact of the portfolio on unused transportation space.