Development and optimization of a horizontal carrier collaboration vehicle routing model with multi-commodity request allocation

This paper proposes a new Vehicle Routing Problem (VRP) with fair Carrier Collaboration (CC) which split multi-pickup and delivery services are considered for serving customers. This study has focused on VRP and serving customers with several commodity requirements from different geographically scattered suppliers subject to constraints on the vehicle capacity. A Mixed Integer Programming (MIP) model to maximize the total profit and the fair sharing of profit among the carriers by considering the travel time minimization is developed. Each carrier with its limited capacity can have reserved requests which must be served by itself and selective requests which can be served by itself or other vehicles or not served at all. There are various applications of the proposed model in the environment which can help reducing number of vehicles serving to the customers and eliminating empty back hauls. A Genetic Algorithm (GA) is proposed to solve this problem due to its Non-deterministic Polynomial-time hard (NP-hard) nature. In addition, Variable Neighbourhood Search (VNS) method is developed for improving the quality of initial solutions. Some instances are generated at different scales to evaluate the algorithm's performance by comparing the results of an exact optimal solution with that of the proposed algorithm. The obtained results demonstrate the efficiency of the proposed algorithm in providing reasonable solutions within an acceptable computational time. The algorithm is also tested for an online shopping website in Tehran, Iran. The test outcome shows that the proposed model returns a better benefit compared to the manual methods. The results of sensitivity analysis suggest that increasing the fairness coefficient among carries can led to a decrease in the total obtained profit.