Abstract
Co-operative freight transport systems have the potential for solving many of urban traffic problems. This paper presents a co-operative vehicle routing and scheduling model with optimal location of logistics terminals for investigating the effects and materialisation of co-operative freight transport systems. Applications of the model to an urban goods delivery showed that introducing co-operative freight transport systems could lead to a substantial reduction in delivery cost and total travel time within the whole road network, while the profitability of the co-operative freight organisation depends on the area size and the number of customers.
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