Optimization of Carrier Selection and Cargo Consolidation in U.S. Freight Transportation: A Game Theory and TSP Approach

Background: In the competitive realm of freight transportation, optimizing carrier selection and consolidation strategies is paramount to reducing operational costs and enhancing supply chain efficiency. Methods: This paper presents an integrated framework that combines game theory—via an auction method—and the Traveling Salesman Problem (TSP) for route optimization, applied to U.S. freight logistics. New supplier cities across the Eastern, Central, and Western regions of the United States are considered, and two optimal consolidation warehouses are determined through weighted cluster analysis. Distinct transportation tariffs, determined by regional characteristics, are employed to calculate delivery costs. Results: The analysis demonstrates that by reassigning consolidation hubs and leveraging competitive bidding, monthly transportation costs can be reduced by approximately $20,000. Conclusions: The synergy between game-theoretic auctions and TSP-based route optimization significantly enhances logistical efficiency and cost-effectiveness, offering practical benefits for supply chain management in the freight industry.