How to achieve fair and efficient cooperative vehicle routing?

Abstract

A cooperative is a business entity with the primary objective of providing benefits, services, and goods to its members, who both own and exercise democratic control over it. In the context of a cooperative, a fleet typically consists of vehicles owned by self-concerned individually rational owners who prioritize their own efficiency and the fairness of the system. This fairness refers to how their individual gain aligns with the gain of others. In this paper, we focus on the routing of such cooperative fleets. Considering only the fleet’s efficiency in terms of minimising its overall cost, the studied problem corresponds to the multiple Traveling Salesman Problem (mTSP). However, our interest lies in finding both efficient and fair solutions, so we propose two new variants of this problem that integrate and maximise the fleet’s egalitarian and elitist social welfare. Additionally, to enhance the balance between fleet efficiency and fairness, we propose the systematic elitist and systematic egalitarian social welfare optimisation algorithm. Through simulation results, we observe a wide diversity of routes depending on the approach considered. Therefore, a cooperative may choose a model that best balances its fleet’s efficiency and fairness based on its specific requirements.