Bundles generation and pricing in crowdshipping

Crowdshipping is a new delivery paradigm that exploits the capacity of ordinary people who offer their own vehicles and free time to perform deliveries against compensation. In this work, the authors consider a peer-to-peer logistic platform where a company receives orders from its customers and assigns them to occasional drivers (ODs), or crowdshippers, who perform the delivery operations. The authors first investigate the problem of deciding how the orders should be partitioned into bundles, where a bundle is a set of orders assigned to the same OD. Then, the authors focus on the problem of determining the compensation associated with each bundle, with the purpose of minimizing the total delivery costs. The pricing scheme is based on the assumption that each OD is associated with a willingness-to-serve function, which is modeled as a random variable that gives the probability that the OD accepts to deliver the bundle given the compensation value. This random variable captures the estimation of the willingness-to-serve function that the company has elaborated, for example on the basis of historical data. If the compensation offered by the company is greater than or equal to the willingness-to-serve value, the OD performs the delivery, otherwise she/he refuses. In case no OD is available to deliver a bundle, then all packages in the bundle are offered to a third-party delivery company. The authors simulate two auction systems for the assignment of bundles to ODs: a static and a dynamic auction. In exhaustive simulation tests, the authors compare different pricing schemes as well as the two auction systems, and outline several managerial insights.

• Record URL:
  • https://doi.org/10.1016/j.ejtl.2024.100142
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S2192437624000177
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/21924376
• Supplemental Notes:
  • © 2024 The Authors. Published by Elsevier B.V. on behalf of Association of European Operational Research Societies (EURO). Abstract reprinted with permission of Elsevier.
• Authors:
  • Macrina, Giusy
  • 0000-0001-6762-3622
  • Archetti, Claudia
  • Guerriero, Francesca
  • 0000-0002-3887-1317
• Publication Date: 2024

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; Maps; References; Tables;
• Pagination: 100142
• Serial:
  • EURO Journal on Transportation and Logistics
  • Volume: 13
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 2192-4376
  • Serial URL: https://www.journals.elsevier.com/euro-journal-on-transportation-and-logistics/
• Publication flags:

  Open Access (libre)

Subject/Index Terms

• TRT Terms: Crowdsourcing; Delivery service; Logistics; Pricing
• Subject Areas: Finance; Freight Transportation; Operations and Traffic Management; Planning and Forecasting;

Filing Info

• Accession Number: 01931373
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 19 2024 9:14AM