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Data-Driven Driver Dispatching System with Allocation Constraints and Operational Risk Management for a Ride-Sharing Platform
Stockholm University, Faculty of Social Sciences, Stockholm Business School. University of Chinese Academy of Sciences, China.
Number of Authors: 22020 (English)In: Decision Sciences, ISSN 0011-7315, E-ISSN 1540-5915, Vol. 51, no 6, p. 1490-1520Article in journal (Refereed) Published
Abstract [en]

In this article, we develop and analyze a driver dispatching system for a control center that aims to minimize passengers' waiting time. The system imposes allocation constraints that ensure a minimum number of drivers in different regions to manage operational risk. The data-driven system is based on Rolling Time Horizon approach and utilizes knowledge learned from historical data. It incorporates a hybrid forecasting model and a heuristic algorithm to solve the off-line problem in each iteration. We show that the NP-hardness of the off-line problem lies in allocation constraints. We test the performance of the system with a simulation study based on actual past taxi order data. The result suggests that the system markedly decreases the average waiting time and saves planning time in comparison with the request-driven dispatching mode. The result also demonstrates that in nonextreme cases, the dispatching system finds an acceptable solution which approximately satisfies allocation constraints while guaranteeing a short increase in waiting time.

Place, publisher, year, edition, pages
2020. Vol. 51, no 6, p. 1490-1520
Keywords [en]
Data-Driven Analytics, Driver Dispatching System, Operational Risk Management, and Ride-Sharing
National Category
Business Administration
Identifiers
URN: urn:nbn:se:su:diva-181143DOI: 10.1111/deci.12433ISI: 000522677500001OAI: oai:DiVA.org:su-181143DiVA, id: diva2:1429987
Available from: 2020-05-13 Created: 2020-05-13 Last updated: 2022-02-26Bibliographically approved

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Wu, Desheng

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