Collaborative two-echelon multicenter vehicle routing optimization based on state-space-time network representation

Collaboration among service providers in a logistics network can greatly increase their operation efficiencies and reduce transportation emissions. This study proposes, formulates and solves a collaborative two-echelon multicenter vehicle routing problem based on a state-space-time (CTMCVRP-SST) network to facilitate collaboration and resource sharing in a multiperiod state-space-time (SST) logistics network. The CTMCVRP-SST aims to facilitate collaboration in logistics networks by leveraging the spatial-temporal properties of logistics demands and resources to optimize the distribution of logistics resources in space and time to meet logistics demands. A three-component solution framework is proposed to solve CTMCVRP-SST. First, a bi-objective linear programming model based on resource sharing in a multiperiod SST network is formulated to minimize the number of vehicles and the total cost of the collaborative operation. Second, an integrated algorithm consisting of SST-based dynamic programming (DP), improved K-means clustering and improved non-dominated sorting genetic algorithm-II (Im-NSGAII) is developed to obtain optimal routes. Third, a cost gap allocation model is employed to design a collaborative mechanism that encourages cooperation among logistics service providers. Using this solution framework, the coalition sequences (i.e., the order of each logistics provider joining a collaborative coalition) are designed and the stability of the coalitions based on profit allocations is studied. Results show that the proposed algorithm outperforms existing algorithms in minimizing the total cost with all other constraints being the same. An empirical case study of a logistics network in Chongqing suggests that the proposed collaboration mechanism with SST network representation can reduce costs, improve transportation efficiency, and contribute to efficient and sustainable logistics network operations. (C) 2020 Elsevier Ltd. All rights reserved.