A Method for Transportation Planning and Profit Sharing in Collaborative Multi-Carrier Vehicle Routing

Abstract

This paper addresses a collaborative multi-carrier vehicle routing problem (CMCVRP) where carriers tackle their orders collaboratively to reduce transportation costs. First, a hierarchical heuristics algorithm is proposed to solve the transportation planning problem. This algorithm makes order assignments based on two distance rules and solves the vehicle routing problem with a hybrid genetic algorithm. Second, the profit arising from the coalition is quantified, and an improved Shapley value method is proposed to distribute the profit fairly to individual players. Extensive experiment results showed the effectiveness of the proposed hierarchical heuristics algorithm and confirmed the stability and fairness of the improved Shapley value method.

Two-Echelon Multidepot Logistics Network Design with Resource Sharing

“…e Shapley value method is utilized in this study. Here, A and A s are defined as the grand alliance consisting of all logistics facilities in the 2E-CMDPDTW and a suballiance including some of them, (2) Set system parameters: pop size , tmax, rmax (3) Set genetic parameters: p cro , p mut Implement (4) for run � 1: rmax (5) Generate the initial population by greedy algorithm and scanning algorithm (6) for i � 1: tmax (7) for i � 1: pop size (8) Evaluate the objective function ( 9) End (10) Carry out order crossover and polynomial mutation for the population (11) Generate the offspring population Q i (12) Combine the parent population P i and the offspring population Q i to generate a new population R i (13) Perform the non-dominated sorting and crowding distance calculating for the R i (14) Select individuals from the R i to generate a new population P i+1 (15) end ( 16) end (17) Obtain the optimal solutions ALGORITHM 2: Procedure of the proposed Im-NSGA-II.…”

“…Step 6: Assign the customer to the closest cluster center. End (8) Step 7: Reassess the similarity of customers in each center, and update the clusters. (9) Step 8: Repeat Steps 3-6 until every customer is assigned to the closest cluster center.…”

“…In terms of sharing customer information and transportation resources, the scattered customers originally belonging to different logistics facilities can be reallocated to appropriate ones to reduce costs and meet the constraints (e.g., time windows for service). Despite the advantages of collaboration, a critical issue on allocating the cost savings (i.e., profits produced via alliances) is its contributions to the stability of an alliance [8,9]. With cost savings and reasonable profit allocations, alliances can be more stable and attractive to potential logistics facilities trapped in a traditional network.…”

The Impacts of the Cross-Chain Collaboration Center Model on Transportation Performance: A Case Study of a Bulk Transportation Network in Thailand

“…If they do not wish to share their costs every time, even occasional sharing results in a greater improvement. Shi et al [18] proposed a method to solve the collaborative multi-carrier vehicle routing problem to reduce transportation costs and share the profit fairly with individual players. Maneengam and Udomsakdigool [19] proposed a covering model with a screening technique to reduce the initial problem size for collaborative bidirectional multi-period vehicle routing problems under profit-sharing agreements in bulk transportation.…”

Essays on last mile logistics alliances and the finite horizon joint replenishment problem

“…Shapley value method is used to allocate the cost savings generated in a collaborative scenario of pickup and delivery problems (Krajewska et al (2008), Farvaresh andShahmansouri (2020)) and also in problems where order delivery is modelled as a bin packing problem ). There are also studies which look at modifying the Shapley value method by attempting to reduce computation time ( Özener (2014), Schulte et al (2019), Shi et al (2020)), incorporating additional problem parameters such as flexibility of players )…”