A cooperative vehicle routing problem with delivery options for simultaneous pickup and delivery services in rural areas

Abstract

The booming e-commerce is challenging express companies by requiring higher logistics service efficiency in rural China. This study investigates a cooperative vehicle routing problem for simultaneous pickup and delivery requests, in which the delivery orders can be fulfilled either by home delivery or customer pickup. The delivery option for each order is complex due to the optional cooperative relationships among express companies, the inter-dependence between self-pickup site selection and the overall online vehicle routing scheme, and the distance-dependent compensation to self-pickup customers. The problem is formulated as a mixed integer linear programming model and solved by a tailored adaptive large neighborhood search algorithm. A cost-saving allocation mechanism based on the core guaranteed Shapley value is applied to carrier collaboration. The numerical results show that the newly introduced cooperative distribution system can significantly reduce operational costs. Such improvements are robust even if the total demand changes or under different rural logistics network topologies.