Core stable coalition selection in collaborative truckload transportation procurement

Nihat Öner and Gültekin Kuyzu

Transportation Research Part E: Logistics and Transportation Review, 2021, vol. 154, issue C

Abstract: We study the problem of forming a core stable coalition that minimizes system-wide cost, given a set of candidate full truckload shipment lanes, which we model as players, and a characteristic function that corresponds to solving an NP-Hard cost minimizing lane covering problem. Since not every coalition has a non-empty core in this setting, we formulate a mixed integer linear program that can identify a core stable coalition with minimal system-wide cost along with a cost allocation in the core. We propose a solution method that embeds row generation, column generation, and an upper bounding heuristic into branch-and-bound, which can be considered as a form of branch-and-cut-and-price. We evaluate the performance of our solution method through extensive numerical experiments on randomly generated problem instances.

Keywords: Collaborative logistics; Cooperative game; Stable coalition selection; Column and row generation; Branch-and-cut-and-price (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.tre.2021.102447

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