Exact solutions for the collaborative pickup and delivery problem

In this study we investigate the decision problem of a central authority in pickup and delivery carrier collaborations. Customer requests are to be redistributed among participants, such that the total cost is minimized. We formulate the problem as multi-depot traveling salesman problem with pickups and deliveries. We apply three well-established exact solution approaches and compare their performance in terms of computational time. To avoid unrealistic solutions with unevenly distributed workload, we extend the problem by introducing minimum workload constraints. Our computational results show that, while for the original problem Benders decomposition is the method of choice, for the newly formulated problem this method is clearly dominated by the proposed column generation approach. The obtained results can be used as benchmarks for decentralized mechanisms in collaborative pickup and delivery problems.