Design of Delivery Time Windows in Online Grocery Retail
Delivery time windows are a central element in online grocery retail. They determine the time period in which customers receive their orders and therefore have a substantial impact on both demand and the efficiency of delivery routes. While short time windows improve service quality, they make efficient route planning more difficult.
We study how delivery time windows in online grocery retail can be strategically designed to balance customer satisfaction and efficiency in last-mile delivery. Using analytical models and simulations, we analyze how the number, length, and overlap of time windows affect demand, delivery costs, and service quality. In doing so, we contribute to a better understanding of how the design of delivery time windows shapes the interaction between customer behavior and delivery planning.