Auction-Based Approach for Pickup and Delivery Problem with Time Windows

The widespread use of digital technology enables the development of practical solutions to real-life problems. One such challenge is the Pickup and Delivery Problem with Time Windows (PDPTW), an extension of the Vehicle Routing Problem (VRP), in which vehicles transport goods from pickup locations to delivery locations within specific time windows. This research proposes a decentralized approach based on Agent Modeling and an auction-based mechanism to solve the PDPTW. In this model, each courier independently determines its own trajectory, and can keep it as a private information. The main objective is to minimize the number of vehicles used, while each vehicle seeks to reduce its travel distance and serve as many requests as possible. Finally, the results of this approach are compared with those presented in the existing literature, with empirical evidence of the impact of flexibility on fleet size and travel distance compared to centralized methods.