Assignment constraints in shared transportation services

Abstract

AbstractCompetitive markets, increased fuel costs, and underutilized vehicle fleets are characteristics that currently define the logistics sector. Given an increasing pressure to act in a manner that is economically and ecologically efficient, mechanisms that help to benefit from idle capacities are on the rise. In the Sharing Economy, collaborative usage is typically organized through platforms that facilitate the exchange of goods or services. Our study examines a collaborative pickup and delivery problem where carriers can exchange customer requests. The aim is to quantify the potential of horizontal collaborations under a centralized framework. An Adaptive Large Neighborhood Search is developed to solve yet unsolved test instances. A computational study confirms the results of past studies which have reported cost savings between 20 and 30%. In addition, the numerical results indicate an even greater potential for settings with a high degree of regional customer overlap. Unfortunately, these high collaborative gains typically come at the cost of an uneven customer distribution, which is known to be one of the main barriers that prevent companies from entering into horizontal collaborations. To generate acceptable solutions for all participants, several constraints are included in the model. The introduction of these constraints to single-vehicle instances, decreases the potential collaborative gain considerably. Surprisingly, this does not happen in more realistic settings of carriers operating multiple vehicles. Overall, the computational study shows that centralized collaborative frameworks have the potential to generate considerable cost savings, while at the same time limiting customer or profit share losses and enabling carriers to keep some of their most valued customers.