An aided decision framework based on optimisation and game theory for a green and shared vehicle routing problem

Abstract

We introduce an aided decision framework for co-opetition, i.e., collaboration of competitor companies, in food distribution by considering the economic and environmental advantages of it. We show the benefits and issues related to co-opetition of the retailing companies in food distribution networks. The mathematical model indicates major financial and environmental improvements through increasing the filing rate of the trucks and reducing the number of trucks used in the logistics network as a result of co-opetition of the companies. The results are based on a case study of a food distribution network serving three retailers. This paper provides practical facts which might be useful for the logistics managers of the food retailing companies. The sustainable environmental benefits of co-opetition through the lens of cooperative game theory are investigated.