Individually Rational Collaborative Vehicle Routing through
Give-And-Take Exchanges
- URL: http://arxiv.org/abs/2308.16501v1
- Date: Thu, 31 Aug 2023 07:18:37 GMT
- Title: Individually Rational Collaborative Vehicle Routing through
Give-And-Take Exchanges
- Authors: Paul Mingzheng Tang, Ba Phong Tran, Hoong Chuin Lau
- Abstract summary: We introduce a novel multi-agent approach to this problem, focusing on the Collaborative Vehicle Routing Problem (CVRP) through the lens of individual rationality.
By facilitating cooperation among competing logistics agents through a Give-and-Take approach, we show that it is possible to reduce travel distance and increase operational efficiency system-wide.
- Score: 4.266376725904727
- License: http://creativecommons.org/licenses/by/4.0/
- Abstract: In this paper, we are concerned with the automated exchange of orders between
logistics companies in a marketplace platform to optimize total revenues. We
introduce a novel multi-agent approach to this problem, focusing on the
Collaborative Vehicle Routing Problem (CVRP) through the lens of individual
rationality. Our proposed algorithm applies the principles of Vehicle Routing
Problem (VRP) to pairs of vehicles from different logistics companies,
optimizing the overall routes while considering standard VRP constraints plus
individual rationality constraints. By facilitating cooperation among competing
logistics agents through a Give-and-Take approach, we show that it is possible
to reduce travel distance and increase operational efficiency system-wide. More
importantly, our approach ensures individual rationality and faster
convergence, which are important properties of ensuring the long-term
sustainability of the marketplace platform. We demonstrate the efficacy of our
approach through extensive experiments using real-world test data from major
logistics companies. The results reveal our algorithm's ability to rapidly
identify numerous optimal solutions, underscoring its practical applicability
and potential to transform the logistics industry.
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