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.

Highlights

  • With the rapid development of electronic commerce, logistics service providers—i.e., carriers—are under pressure to improve their efficiencies and service qualities to stay competitive in a fierce business environment

  • This paper aims at addressing transportation planning and profit sharing issues in the collaborative multi-carrier vehicle routing problem (CMCVRP)

  • When the scheme of the coalition with minimum cost is obtained in the stage of transportation planning, the profit gained in the collaboration will be quantified and allocated to individual players

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Summary

Introduction

With the rapid development of electronic commerce, logistics service providers—i.e., carriers—are under pressure to improve their efficiencies and service qualities to stay competitive in a fierce business environment. Proposed collaborative strategies for goods delivery in city logistics, where several companies united to reduce the transportation distance These studies did enrich the research on the CMCVRP, but the profit sharing among the players was neglected. GotheLundgren et al [28] employed a nucleolus method to address the vehicle routing cost allocation problem, trying to minimize the maximum discontent among the players in a cooperative game. Compared to the existing studies, we try to make a contribution by (1) proposing the methodology for carriers in the field of electronic commerce to conduct horizontal collaboration, (2) focusing on the collaborative multi-carrier vehicle routing problem (CMCVRP) and formulating an optimization model for the transportation planning process and the game model for profit sharing, and (3) designing methods for addressing transportation planning and profit sharing issues in the CMCVRP.

Problem Description
Objective
The Model of Profit Sharing
Transportation Planning Based on HHA
Order Assignment
Solving the Vehicle Routing Problem with HGA
Problem
Population
Selection
Method
Basic Concepts in CGT
Method for Profit Sharing
An Example with Three Carriers
Solution Framework for the CMCVRP
Discussion
Testing the Performance of HHA for Transportation Planning
Quantifying the Gained Profit
Allocating the Gained Profit
Findings
Conclusions and Future Work
Full Text
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