Highlights Outsourcing price optimization for parcels and passengers shared transportation. A bilevel optimization model is formulated considering game play between PSP and OMP. Customized iterative hybrid algorithm integrates tabu search algorithm and genetic algorithm. Real-life case study in Hong Kong is conducted.

    Abstract Online-to-offline (O2O) parcel delivery service providers (PSPs) are facing ever-increasing pressure to provide timely and reliable delivery services. An emerging form of collaborative crowd-shipping based on on-demand mobility (COM) services, which utilizes the excess capacity of on-demand mobility vehicles (e.g., taxis and ride-hailing vehicles) to deliver O2O parcels, is proposed to alleviate PSP’s delivery pressure while improving the profitability for the on-demand mobility service provider (OMP). This study investigates an outsourcing service price problem for a collaborative COM considering the game play between PSP and OMP. A bilevel optimization model is formulated, and a customized iterative hybrid (IH) algorithm integrating two tabu search algorithms with objective-oriented granularity and a genetic algorithm is proposed to find the solution. Numerical experiments conducted on randomly generated instances and a real-life case study demonstrate that the COM model with a well-designed outsourcing service price can benefit both participants, with PSP achieving up to 17.0 % cost savings and OMP achieving up to 15.8% profit improvement.


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    Title :

    Outsourcing service price for crowd-shipping based on on-demand mobility services


    Contributors:


    Publication date :

    2024-02-03




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




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