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In her PhD research Albina Galiullina from the Operations Planning Accounting and Control (OPAC) research group focuses on how operations can significantly benefit from integrating demand management.

Managing customer demand

The increasing customer demand for fast, affordable, and flexible delivery leads to higher distribution costs and sustainability challenges in transportation. To meet these rising expectations, service providers traditionally have focused on improving operational capacities, such as optimizing delivery routes, inventory management, and network design. However, a less commonly used but increasingly recognized approach is managing customer demand to better align with existing operational capabilities. By encouraging customers to accept small changes in delivery services, logistics providers can operate more efficiently and sustainably, benefiting both businesses and society as a whole.

Reducing costs and environmental impact

This research explores how logistics operations can significantly benefit from integrating demand management. It specifically examines how small adjustments in customer requirements, such as accepting deliveries at alternative pickup points, can significantly reduce costs and environmental impact. This research introduces and evaluates optimization methods such as exact algorithms, heuristic solutions, and machine learning techniques, applied to the problem of last-mile delivery and the management of reusable transport items.

Research

By combining operational effectiveness with customer satisfaction, the methods developed in this research offer promising solutions to logistical challenges. One example is the use of machine learning to predict customer behavior and optimize delivery schedules accordingly. Another example is the implementation of incentive programs to encourage customers to choose more sustainable delivery options.

Galiullina’s research supports a more sustainable and economically viable future in logistics, providing benefits for businesses, customers, and society. By integrating demand management strategies, logistics providers can enhance efficiency and reduce their environmental footprint.

Albina Galiullina defended her thesis on April 10th. Title of the thesis: ‘’. Supervisors: Tom Van Woensel and Nevin Mutlu