Seminar on April 28, 2017

Shipment Consolidation under Different Delivery Date Options for E-tailing

Nesim K. Erkip

Department of Industrial Engineering, Bilkent University


We consider shipment consolidation for an e-retailer that provides two types of services. In regular service, the e-retailer guarantees a maximum delivery time, whereas in premium service customers receive in negligible time. Premium service is realized by downward positioning, and both services uses a consolidated transportation vehicle. Three research questions are investigated:
1) How to operate this system? More specifically, when to ship and how to consolidate deliveries and determine the stock for downward positioning?
2) When is premium service desirable?
3) When is it economical to have strategic lost sales?
Under deterministic demand structure of optimal policy is derived using KKT conditions. Some results and recommendations are presented. Possible extensions are planned.
This is a joint work with Tugce Vural, a PhD student at Penn State Smeal College of Business.

Biographical Sketch

Prof. Erkip received his M.S. and Ph.D. from Stanford University and his B.S. from Middle East Technical University. He worked for Middle East Technical University over 20 years and is currently at Bilkent University where he joined in 2005. He has been teaching since 1979 and has held visiting and research positions Cornell University, Stanford University, University of California at Berkeley and New York University in the United States and University of Eindhoven in Holland. He served as a Fulbright Scholar in 1995-96. He is a scholar in field of industrial engineering and has published many academic papers, reports, and book chapters. He has mentored dozens of M.S. and Ph.D. students, and served as associate editor in a few journals. Currently, he serves in the editorial board of Flexible Services and Manufacturing Journal. Early 1990’s he worked at the Scientific and Technological Research Institute of Turkey (TÜBİTAK), is a founding member of Science and Technology Policy Studies Graduate Program at Middle East Technical University, and had been part of several initiatives in preparing reports on Science and Technology Policy issues in Turkey. Late 1990’s he has been involved in strategic planning activities for private and public higher educational institutions. Prof. Erkip was a member of Board of Trustees for TED University in 2010-2016. For details:

Place, Date & Time

Friday, April 21, 2017, 4.00 pm
IE Building, IE03

Refreshments: 3:45 pm

Event Date: 
Fri, 2017/04/28 - 16:00 - 17:00