Optimizing E-commerce Logistics: A Multi-Metric Approach to the Bin Packing Problem

Abstract: The optimization of package selection in logistics, particularly within the realm of e-commerce, offers numerous potential advantages, such as a reduction in environmental impact and decreased costs. This thesis addresses the problem of allocating items to the minimum number of packages, known as the bin packing problem, by proposing various heuristics. We develop and assess heuristics for assigning products to groups, while heuristics for accommodating these groups within packages are derived from previous research. These heuristics are evaluated within a commercial context, taking into account factors such as delivery cost, environmental impact, and their applicability in real-time systems. Our findings indicate that optimal solutions for smaller orders can be ascertained within a reasonable timeframe, while even rudimentary heuristics yield satisfactory results. It was determined that a key attribute of an effective solution was lowering the number of packages used, as this correlates with reduced shipping costs and environmental impact.