Dynamic pricing of multiple home delivery options

Online grocers accept delivery bookings and have to deliver groceries to consumers’ residences. Grocery stores operate on very thin margins. Therefore, a critical question that an online grocery store needs to address is the cost of home delivery operations. In this paper, we develop a Markov decision process-based pricing model that recognizes the need to balance utilization of delivery capacity by the grocer and the need to have the goods delivered at the most convenient time for the customer. The model dynamically adjusts delivery prices as customers arrive and make choices. The optimal prices have the following properties. First, the optimal prices are such that the online grocer gains the same expected payoff in the remaining booking horizon, regardless of the delivery option independently chosen by a consumer. Second, with unit order sizes, delivery prices can increase due to dynamic substitution effects as there is less time left in the booking horizon.     

The effect of moisture content in fibre laser cutting of pine wood

This paper reports a statistical analysis of the multiple-pass laser cutting of wet and dry pine wood with a Ytterbium fibre laser. As multiple factors affect the laser wood cutting process, finding the optimal combination of process parameters is necessary to achieve good quality and high process efficiency. Design of experiments (DOE) and statistical modelling were used in this study to investigate the significant process parameters and their interactions. A high brightness, 1 kW IPG single mode, continuous wave Ytterbium doped fibre laser was employed to cut wet and dry pine wood samples. The parameters investigated are laser power, traverse speed, focal plane position (f.p.p.), gas pressure, number of passes, direction of cut (normal or parallel to wood's tracheids) and the moisture content. The experimental results were compared against process responses defining the efficiency (i.e. kerf depth and energy consumption) and quality of the cut section (i.e. kerf width, heat affected zone—HAZ, edge surface roughness and perpendicularity). It has been found that the laser cutting process was mainly affected by the moisture content and the cut direction with respect to the wood's tracheids, followed by traverse speed, laser power and the number of passes. The effect of moisture content on energy consumption in the laser cutting process of both wet and dry wood is analysed. The wood cutting results with fibre laser are compared with those from a CO₂ laser.