Optimized cooperative vehicle routing in multi-depot collection systems for circular economy: Model development and case study

Manufactured products and used raw materials should be reprocessed and reutilized to ensure sustainability in the context of the circular economy. Optimized waste collection and management play a crucial role in establishing effective circular economy practices. A collaborative waste collection system is one of the pillars for optimizing the entire waste collection process. Collaborative waste collection involves a cooperative transportation system. This paper explores the integration of operational planning and profit-sharing in a cooperative collection and transportation system, considering three scenarios: non-cooperative, centralized, and decentralized planning. To address routing problems, two heuristic methods and a dynamic programming approach are proposed. Additionally, the study employs a Shapley-value-based mechanism to distribute profits among collection service providers and a proportional method to allocate cost savings among customers. A real-world case study of a bio-waste collection system in Normandy, France, is included. The findings demonstrate that centralized planning can yield cost savings of up to 23%, underscoring the effectiveness of information sharing in transportation planning. This paper highlights the impact of collaboration practices on promoting a circular economy.