IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v183y2024ics1366554524000413.html
   My bibliography  Save this article

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

Author

Listed:
  • Peng, Shouguo
  • Park, Woo-Yong
  • Eltoukhy, Abdelrahman E.E.
  • Xu, Min

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.

Suggested Citation

  • Peng, Shouguo & Park, Woo-Yong & Eltoukhy, Abdelrahman E.E. & Xu, Min, 2024. "Outsourcing service price for crowd-shipping based on on-demand mobility services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:transe:v:183:y:2024:i:c:s1366554524000413
    DOI: 10.1016/j.tre.2024.103451
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554524000413
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2024.103451?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Li, Zhujun & Shalaby, Amer & Roorda, Matthew J. & Mao, Baohua, 2021. "Urban rail service design for collaborative passenger and freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    2. Goeke, Dominik, 2019. "Granular tabu search for the pickup and delivery problem with time windows and electric vehicles," European Journal of Operational Research, Elsevier, vol. 278(3), pages 821-836.
    3. Zhan, Xingbin & Szeto, W.Y. & Wang, Yue, 2023. "The ride-hailing sharing problem with parcel transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(C).
    4. Cordeau, Jean-François & Laporte, Gilbert, 2003. "A tabu search heuristic for the static multi-vehicle dial-a-ride problem," Transportation Research Part B: Methodological, Elsevier, vol. 37(6), pages 579-594, July.
    5. Chao Chen & Shenle Pan & Zhu Wang & Ray Y. Zhong, 2017. "Using taxis to collect citywide E-commerce reverse flows: a crowdsourcing solution," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1833-1844, April.
    6. Lu, Chung-Cheng & Diabat, Ali & Li, Yi-Ting & Yang, Yu-Min, 2022. "Combined passenger and parcel transportation using a mixed fleet of electric and gasoline vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    7. Paolo Toth & Daniele Vigo, 2003. "The Granular Tabu Search and Its Application to the Vehicle-Routing Problem," INFORMS Journal on Computing, INFORMS, vol. 15(4), pages 333-346, November.
    8. Xiao, Haohan & Xu, Min & Wang, Shuaian, 2023. "A game-theoretic model for crowd-shipping operations with profit improvement strategies," International Journal of Production Economics, Elsevier, vol. 262(C).
    9. Le, Tho V. & Ukkusuri, Satish V. & Xue, Jiawei & Van Woensel, Tom, 2021. "Designing pricing and compensation schemes by integrating matching and routing models for crowd-shipping systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    10. Rong Cheng & Yu Jiang & Otto Anker Nielsen, 2023. "Integrated people-and-goods transportation systems: from a literature review to a general framework for future research," Transport Reviews, Taylor & Francis Journals, vol. 43(5), pages 997-1020, September.
    11. Li, Baoxiang & Krushinsky, Dmitry & Reijers, Hajo A. & Van Woensel, Tom, 2014. "The Share-a-Ride Problem: People and parcels sharing taxis," European Journal of Operational Research, Elsevier, vol. 238(1), pages 31-40.
    12. Kirchler, Dominik & Wolfler Calvo, Roberto, 2013. "A Granular Tabu Search algorithm for the Dial-a-Ride Problem," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 120-135.
    13. Marius M. Solomon, 1987. "Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints," Operations Research, INFORMS, vol. 35(2), pages 254-265, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhou, Wenli & Liu, Huan & Cao, Ping & Wang, Yaolei, 2024. "Optimal pricing for on-demand service platforms with heterogeneous customer demand frequencies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 189(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schneider, Michael & Schwahn, Fabian & Vigo, Daniele, 2017. "Designing granular solution methods for routing problems with time windows," European Journal of Operational Research, Elsevier, vol. 263(2), pages 493-509.
    2. Guo, Jiaqi & Long, Jiancheng & Xu, Xiaoming & Yu, Miao & Yuan, Kai, 2022. "The vehicle routing problem of intercity ride-sharing between two cities," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 113-139.
    3. Vidal, Thibaut & Crainic, Teodor Gabriel & Gendreau, Michel & Prins, Christian, 2013. "Heuristics for multi-attribute vehicle routing problems: A survey and synthesis," European Journal of Operational Research, Elsevier, vol. 231(1), pages 1-21.
    4. Hua, Shijia & Zeng, Wenjia & Liu, Xinglu & Qi, Mingyao, 2022. "Optimality-guaranteed algorithms on the dynamic shared-taxi problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    5. Vidal, Thibaut & Crainic, Teodor Gabriel & Gendreau, Michel & Prins, Christian, 2014. "A unified solution framework for multi-attribute vehicle routing problems," European Journal of Operational Research, Elsevier, vol. 234(3), pages 658-673.
    6. Andrew Lim & Zhenzhen Zhang & Hu Qin, 2017. "Pickup and Delivery Service with Manpower Planning in Hong Kong Public Hospitals," Transportation Science, INFORMS, vol. 51(2), pages 688-705, May.
    7. Zhang, Ying & Qi, Mingyao & Miao, Lixin & Liu, Erchao, 2014. "Hybrid metaheuristic solutions to inventory location routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 305-323.
    8. Lu, Quan & Dessouky, Maged M., 2006. "A new insertion-based construction heuristic for solving the pickup and delivery problem with time windows," European Journal of Operational Research, Elsevier, vol. 175(2), pages 672-687, December.
    9. Mo, Pengli & Yao, Yu & D’Ariano, Andrea & Liu, Zhiyuan, 2023. "The vehicle routing problem with underground logistics: Formulation and algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    10. He, Dongdong & Guan, Wei, 2023. "Promoting service quality with incentive contracts in rural bus integrated passenger-freight service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
    11. Fehn, Fabian & Engelhardt, Roman & Dandl, Florian & Bogenberger, Klaus & Busch, Fritz, 2023. "Integrating parcel deliveries into a ride-pooling service—An agent-based simulation study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    12. Hosni, Hadi & Naoum-Sawaya, Joe & Artail, Hassan, 2014. "The shared-taxi problem: Formulation and solution methods," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 303-318.
    13. Timo Gschwind & Michael Drexl, 2016. "Adaptive Large Neighborhood Search with a Constant-Time Feasibility Test for the Dial-a-Ride Problem," Working Papers 1624, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    14. Kloster, Konstantin & Moeini, Mahdi & Vigo, Daniele & Wendt, Oliver, 2023. "The multiple traveling salesman problem in presence of drone- and robot-supported packet stations," European Journal of Operational Research, Elsevier, vol. 305(2), pages 630-643.
    15. Hongtao Lei & Gilbert Laporte & Bo Guo, 2012. "A generalized variable neighborhood search heuristic for the capacitated vehicle routing problem with stochastic service times," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 20(1), pages 99-118, April.
    16. Schneider, M., 2016. "The vehicle-routing problem with time windows and driver-specific times," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 65941, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Han Zhang & Yongbo Lv & Jianwei Guo, 2022. "New Development Direction of Underground Logistics from the Perspective of Public Transport: A Systematic Review Based on Scientometrics," Sustainability, MDPI, vol. 14(6), pages 1-31, March.
    18. Hoogeboom, Maaike & Dullaert, Wout, 2019. "Vehicle routing with arrival time diversification," European Journal of Operational Research, Elsevier, vol. 275(1), pages 93-107.
    19. Raeesi, Ramin & Zografos, Konstantinos G., 2022. "Coordinated routing of electric commercial vehicles with intra-route recharging and en-route battery swapping," European Journal of Operational Research, Elsevier, vol. 301(1), pages 82-109.
    20. Stefan Vonolfen & Michael Affenzeller, 2016. "Distribution of waiting time for dynamic pickup and delivery problems," Annals of Operations Research, Springer, vol. 236(2), pages 359-382, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:183:y:2024:i:c:s1366554524000413. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.