Effects of Truck-shared Delivery: A Case of a Korean Mixed Feed Company

Abstract

This paper discusses a case of truck sharing as an application of the sharing economy. This case study examines a real mixed feed company with multiple factories. In this company’s operation, bulk trucks located in a factory had not previously been shared for delivery with other factories to their pre-assigned customers of stock farms. Therefore, this paper suggests a new delivery system that facilitates truck-sharing and analyzes its effects on the transport cost and trucks’ CO2 emissions. To this end, this paper develops vehicle routing models to represent the current delivery practice and the new truck-shared delivery (TSD). In addition, models are developed for a carbon control policy of an emission trading scheme (ETS) and the effects of the ETS on truck-sharing are investigated. Numerical analysis is conducted to identify the effects of the TSD and the carbon control policy and draw practical implications.