Abstract
We introduce the urban fulfillment network design problem with a ship-from-store option under uncertainty. Stores serve as an intermediate layer in a two-echelon structure to fulfill online orders, with decisions on fulfillment setup and logistics service provider (LSP) selection accounting for fulfillment, delivery, and inventory costs. A two-stage stochastic mixed-integer program handles demand and capacity uncertainty, solved via an integer L-shaped decomposition with scenario sampling. Numerical experiments on a real-world retailer case validate the model and solution approach.