Cooperative vehicle routing problem: an opportunity for cost saving

Authors

1 Industrial Engineering College, Islamic Azad University, South Tehran Branch, Entezari Alley, Oskoui Alley, Choobi Bridge, Tehran, 11518-63411, Iran

2 Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, University Teknologi Malaysia (UTM), 81310, Skudai, Malaysia

Abstract

In this paper, a novel methodology is proposed to solve a cooperative multi-depot vehicle routing problem. We establish a mathematical model for multi-owner VRP in which each owner (i.e. player) manages single or multiple depots. The basic idea consists of offering an option that owners cooperatively manage the VRP to save their costs. We present cooperative game theory techniques for cost saving allocations which are obtained from various coalitions of owners. The methodology is illustrated with a numerical example in which different coalitions of the players are evaluated along with the results of cooperation and cost saving allocation methods.

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