Add Introduction section
This commit is contained in:
parent
f093b3588e
commit
41d5271a9b
4 changed files with 205 additions and 2 deletions
100
tex/1_intro.tex
100
tex/1_intro.tex
|
@ -1,2 +1,102 @@
|
|||
\section{Introduction}
|
||||
\label{intro}
|
||||
|
||||
In recent years, many meal delivery platform providers (e.g., Uber Eats,
|
||||
GrubHub, DoorDash, Deliveroo) with different kinds of business models have
|
||||
entered the markets in cities around the world.
|
||||
A study by \cite{hirschberg2016} estimates the global market size to surpass
|
||||
20 billion Dollars by 2025.
|
||||
A common feature of these platforms is that they do not operate kitchens but
|
||||
focus on marketing their partner restaurants' meals, unifying all order
|
||||
related processes in simple smartphone apps, and managing the delivery via
|
||||
a fleet of either employees or crowd-sourced sub-contractors.
|
||||
|
||||
Various kind of urban delivery platforms (UDP) have received attention in
|
||||
recent scholarly publications.
|
||||
\cite{hou2018} look into heuristics to simultaneously optimize courier
|
||||
scheduling and routing in general, while \cite{masmoudi2018} do so
|
||||
for the popular dial-a-ride problem and \cite{wang2018} investigate
|
||||
the effect of different fulfillment strategies in the context of urban
|
||||
meal delivery.
|
||||
\cite{ehmke2018} and \cite{alcaraz2019} focus their research on the routing
|
||||
aspect, which is commonly modeled as a so-called vehicle routing problem
|
||||
(\gls{vrp}).
|
||||
|
||||
Not covered in the recent literature is research focusing on the demand
|
||||
forecasting problem a UDP faces.
|
||||
Due to the customers' fragmented locations and the majority of the orders
|
||||
occurring ad-hoc for immediate delivery in the case of a meal delivery
|
||||
platform, forecasting demand for the near future (i.e., several hours)
|
||||
and distinct locations of the city in real-time is an essential factor
|
||||
in achieving timely fulfillment.
|
||||
In general, demand forecasting is a well-researched discipline with a
|
||||
decades-long history in scholarly journals as summarized, for example, by
|
||||
\cite{de2006}.
|
||||
Even some meal delivery platforms themselves publish their practices: For
|
||||
example, \cite{bell2018} provide a general overview of supply and demand
|
||||
forecasting at Uber and benchmarks of the methods used while
|
||||
\cite{laptev2017} investigate how extreme events can be incorporated.
|
||||
|
||||
The conditions such platforms face are not limited to meal delivery:
|
||||
Any entity that performs ad-hoc requested point-to-point transportation at
|
||||
scale in an urban area benefits from a robust forecasting system.
|
||||
Examples include ride-hailing, such as the original Uber offering, or bicycle
|
||||
courier services.
|
||||
The common characteristics are:
|
||||
\begin{itemize}
|
||||
\item \textbf{Geospatial Slicing}:
|
||||
Forecasts for distinct parts of a city in parallel
|
||||
\item \textbf{Temporal Slicing}:
|
||||
Forecasts on a sub-daily basis (e.g., 60-minute windows)
|
||||
\item \textbf{Order Sparsity}:
|
||||
The historical order time series exhibit an intermittent pattern
|
||||
\item \textbf{Double Seasonality}:
|
||||
Demand varies with the day of the week and the time of day
|
||||
\end{itemize}
|
||||
Whereas the first two points can be assumed to vary with the concrete
|
||||
application's requirements, it is the last two that pose challenges for
|
||||
forecasting a platform's demand:
|
||||
Intermittent demand (i.e., many observations in the historic order time series
|
||||
exhibit no demand at all) renders most of the commonly applied error
|
||||
metrics useless.
|
||||
Moreover, many of the established forecasting methods can only handle a single
|
||||
and often low seasonality (i.e., repeated regular pattern), if at all.
|
||||
|
||||
In this paper, we develop a rigorous methodology as to how to build and
|
||||
evaluate a robust forecasting system for an urban delivery platform
|
||||
(\gls{udp}) that offers ad-hoc point-to-point transportation of any kind.
|
||||
We implement such a system with a broad set of commonly used forecasting
|
||||
methods.
|
||||
We not only apply established (i.e., "classical") time series methods but also
|
||||
machine learning (\gls{ml}) models that have gained traction in recent
|
||||
years due to advancements in computing power and availability of larger
|
||||
amounts of data.
|
||||
In that regard, the classical methods serve as benchmarks for the ML methods.
|
||||
Our system is trained on and evaluated with a dataset obtained from an
|
||||
undisclosed industry partner that, during the timeframe of our study, was
|
||||
active in several European countries and, in particular, in France.
|
||||
Its primary business strategy is the delivery of meals from upper-class
|
||||
restaurants to customers in their home or work places via bicycles.
|
||||
In this empirical study, we identify the best-performing methods.
|
||||
Thus, we answer the following research questions:
|
||||
\begin{enumerate}
|
||||
\item[\textbf{Q1}:]
|
||||
Which forecasting methods work best under what circumstances?
|
||||
\item[\textbf{Q2}:]
|
||||
How do classical forecasting methods compare with ML models?
|
||||
\item[\textbf{Q3}:]
|
||||
How does the forecast accuracy change with more historic data available?
|
||||
\item[\textbf{Q4}:]
|
||||
Can real-time information on demand be exploited?
|
||||
\item[\textbf{Q5}:]
|
||||
Can external data (e.g., weather data) improve the forecast accuracy?
|
||||
\end{enumerate}
|
||||
To the best of our knowledge, no such study has yet been published in a
|
||||
scholarly journal.
|
||||
|
||||
The subsequent Section \ref{lit} reviews the literature on the forecasting
|
||||
methods included in the system.
|
||||
Section \ref{mod} introduces our forecasting system, and Section \ref{stu}
|
||||
discusses the results obtained in the empirical study.
|
||||
Lastly, Section \ref{con} summarizes our findings and concludes
|
||||
with an outlook on further research opportunities.
|
|
@ -1 +1,12 @@
|
|||
% Abbreviations for technical terms.
|
||||
\newglossaryentry{ml}{
|
||||
name=ML, description={Machine Learning}
|
||||
}
|
||||
\newglossaryentry{udp}{
|
||||
name=UDP, description={Urban Delivery Platform}
|
||||
}
|
||||
\newglossaryentry{vrp}{
|
||||
name=VRP, description={Vehicle Routing Problem}
|
||||
}
|
||||
|
||||
\printglossaries
|
|
@ -1,2 +1,9 @@
|
|||
% Use the document width more effectively.
|
||||
\usepackage[margin=2.5cm]{geometry}
|
||||
|
||||
\usepackage[acronym]{glossaries}
|
||||
\makeglossaries
|
||||
|
||||
% Make opening quotes look different than closing quotes.
|
||||
\usepackage[english=american]{csquotes}
|
||||
\MakeOuterQuote{"}
|
|
@ -0,0 +1,85 @@
|
|||
@article{alcaraz2019,
|
||||
title={Rich vehicle routing problem with last-mile outsourcing decisions},
|
||||
author={Alcaraz, Juan J and Caballero-Arnaldos, Luis and Vales-Alonso, Javier},
|
||||
year={2019},
|
||||
journal={Transportation Research Part E: Logistics and Transportation Review},
|
||||
volume={129},
|
||||
pages={263--286}
|
||||
}
|
||||
|
||||
@misc{bell2018,
|
||||
title = {Forecasting at Uber: An Introduction},
|
||||
author={Bell, Franziska and Smyl, Slawek},
|
||||
year={2018},
|
||||
howpublished = {\url{https://eng.uber.com/forecasting-introduction/}},
|
||||
note = {Accessed: 2020-10-01}
|
||||
}
|
||||
|
||||
@article{de2006,
|
||||
title={25 Years of Time Series Forecasting},
|
||||
author={De Gooijer, Jan and Hyndman, Rob},
|
||||
year={2006},
|
||||
journal={International Journal of Forecasting},
|
||||
volume={22},
|
||||
number={3},
|
||||
pages={443--473}
|
||||
}
|
||||
|
||||
@article{ehmke2018,
|
||||
title={Optimizing for total costs in vehicle routing in urban areas},
|
||||
author={Ehmke, Jan Fabian and Campbell, Ann M and Thomas, Barrett W},
|
||||
year={2018},
|
||||
journal={Transportation Research Part E: Logistics and Transportation Review},
|
||||
volume={116},
|
||||
pages={242--265}
|
||||
}
|
||||
|
||||
@misc{hirschberg2016,
|
||||
title = {McKinsey: The changing market for food delivery},
|
||||
author={Hirschberg, Carsten and Rajko, Alexander and Schumacher, Thomas
|
||||
and Wrulich, Martin},
|
||||
year={2016},
|
||||
howpublished = "\url{https://www.mckinsey.com/industries/high-tech/
|
||||
our-insights/the-changing-market-for-food-delivery}",
|
||||
note = {Accessed: 2020-10-01}
|
||||
}
|
||||
|
||||
@article{hou2018,
|
||||
title={Ride-matching and routing optimisation: Models and a large
|
||||
neighbourhood search heuristic},
|
||||
author={Hou, Liwen and Li, Dong and Zhang, Dali},
|
||||
year={2018},
|
||||
journal={Transportation Research Part E: Logistics and Transportation Review},
|
||||
volume={118},
|
||||
pages={143--162}
|
||||
}
|
||||
|
||||
@misc{laptev2017,
|
||||
title = {Engineering Extreme Event Forecasting
|
||||
at Uber with Recurrent Neural Networks},
|
||||
author={Laptev, Nikolay and Smyl, Slawek and Shanmugam, Santhosh},
|
||||
year={2017},
|
||||
howpublished = {\url{https://eng.uber.com/neural-networks/}},
|
||||
note = {Accessed: 2020-10-01}
|
||||
}
|
||||
|
||||
@article{masmoudi2018,
|
||||
title={The dial-a-ride problem with electric vehicles and battery
|
||||
swapping stations},
|
||||
author={Masmoudi, Mohamed Amine and Hosny, Manar and Demir, Emrah
|
||||
and Genikomsakis, Konstantinos N and Cheikhrouhou, Naoufel},
|
||||
year={2018},
|
||||
journal={Transportation research part E: logistics and transportation review},
|
||||
volume={118},
|
||||
pages={392--420}
|
||||
}
|
||||
|
||||
@article{wang2018,
|
||||
title={Delivering meals for multiple suppliers: Exclusive or sharing
|
||||
logistics service},
|
||||
author={Wang, Zheng},
|
||||
year={2018},
|
||||
journal={Transportation Research Part E: Logistics and Transportation Review},
|
||||
volume={118},
|
||||
pages={496--512}
|
||||
}
|
Loading…
Reference in a new issue