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Location Design and Relocation of a Mixed Car-Sharing Fleet with a CO 2 Emission Constraint

Author

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  • Joy Chang

    (Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109)

  • Miao Yu

    (Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109)

  • Siqian Shen

    (Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109)

  • Ming Xu

    (School of Natural Resources and Environment, University of Michigan, Ann Arbor, Michigan 48109; Department of Civil and Environmental Engineering, University of Michigan, Ann Arbor, Michigan 48109)

Abstract

Car-sharing companies have shown increasing support in the adoption of fuel-efficient cars to reduce CO 2 emissions and to meet heterogeneous demand. In this paper, we consider location design and relocation problems for sharing a mixed fleet of cars and propose integer linear programs that incorporate both one-way and round-trip demand and operations. To model car movements, we use a minimum-cost flow model on a spatial–temporal network given time-based demand. We maximize the total profit of renting cars minus the cost of relocation and maintenance, subject to limited budget for purchasing cars and given a CO 2 emission limit. In addition, we enforce the first-come, first-served principle to eliminate denied trips. We conduct computational studies based on 2014 Zipcar data in Boston to provide insights for fleet location, car-type designs, and their environmental impacts. Our results show high utilization of cars and low demand losses and denied trips. Although the CO 2 emission limit may lower car-sharing profit, high demand on new energy-efficient cars can compensate the loss and is worth being satisfied.

Suggested Citation

  • Joy Chang & Miao Yu & Siqian Shen & Ming Xu, 2017. "Location Design and Relocation of a Mixed Car-Sharing Fleet with a CO 2 Emission Constraint," Service Science, INFORMS, vol. 9(3), pages 205-218, September.
    • Handle: RePEc:inm:orserv:v:9:y:2017:i:3:p:205-218
    DOI: 10.1287/serv.2017.0178
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