Multi-objective vehicle routing with automated negotiation

Abstract

This paper investigates a problem that lies at the intersection of three research areas, namely automated negotiation, vehicle routing, and multi-objective optimization. Specifically, it investigates the scenario that multiple competing logistics companies aim to cooperate by delivering truck loads for one another, in order to improve efficiency and reduce the distance they drive. In order to do so, these companies need to find ways to exchange their truck loads such that each of them individually benefits. We present a new heuristic algorithm that, given one set of orders for each company, tries to find the set of all truck load exchanges that are Pareto-optimal and individually rational. Unlike existing approaches, it does this without relying on any kind of trusted central server, so the companies do not need to disclose their private cost models to anyone. The idea is that the companies can then use automated negotiation techniques to negotiate which of these truck load exchanges will truly be carried out. Furthermore, this paper presents a new, multi-objective, variant of And/Or search that forms part of our approach, and it presents experiments based on real-world data, as well as on the commonly used Li & Lim data set. These experiments show that our algorithm is able to find hundreds of solutions within a matter of minutes. Finally, this paper presents an experiment with several state-of-the-art negotiation algorithms to show that the combination of our search algorithm with automated negotiation is viable.