The two-echelon capacitated vehicle routing problem: models and math-based heuristics

Multiechelon distribution systems are quite common in supply-chain and logistics. They are used by public administrations in their transportation and traffic planning strategies, as well as by companies, to model own distribution systems. In the literature, most of the studies address issues relating to the movement of flows throughout the system from their origins to their final destinations. Another recent trend is to focus on the management of the vehicle fleets required to provide transportation among different echelons. The aim of this paper is twofold. First, it introduces the family of two-echelon vehicle routing problems (VRPs), a term that broadly covers such settings, where the delivery from one or more depots to customers is managed by routing and consolidating freight through intermediate depots. Second, it considers in detail the basic version of two-echelon VRPs, the two-echelon capacitated VRP, which is an extension of the classical VRP in which the delivery is compulsorily delivered through intermediate depots, named satellites. A mathematical model for two-echelon capacitated VRP, some valid inequalities, and two math-heuristics based on the model are presented. Computational results of up to 50 customers and four satellites show the effectiveness of the methods developed

A new exact algorithm for the multi-depot vehicle routing problem under capacity and route length constraints

This article presents an exact algorithm for the multi-depot vehicle routing problem (MDVRP) under capacity and route length constraints. The MDVRP is formulated using a vehicle-flow and a set-partitioning formulation, both of which are exploited at different stages of the algorithm. The lower bound computed with the vehicle-flow formulation is used to eliminate non-promising edges, thus reducing the complexity of the pricing subproblem used to solve the set-partitioning formulation. Several classes of valid inequalities are added to strengthen both formulations, including a new family of valid inequalities used to forbid cycles of an arbitrary length. To validate our approach, we also consider the capacitated vehicle routing problem (CVRP) as a particular case of the MDVRP, and conduct extensive computational experiments on several instances from the literature to show its effectiveness. The computational results show that the proposed algorithm is competitive against stateof-the-art methods for these two classes of vehicle routing problems, and is able to solve to optimality some previously open instances. Moreover, for the instances that cannot be solved by the proposed algorithm, the final lower bounds prove stronger than those obtained by earlier methods

Robust Branch-Cut-and-Price for the Capacitated Minimum Spanning Tree Problem over a Large Extended Formulation

This paper presents a robust branch-cut-and-price algorithm for the Capacitated Minimum Spanning Tree Problem (CMST). The variables are associated to q-arbs, a structure that arises from a relaxation of the capacitated prize-collecting arbores- cence problem in order to make it solvable in pseudo-polynomial time. Traditional inequalities over the arc formulation, like Capacity Cuts, are also used. Moreover, a novel feature is introduced in such kind of algorithms. Powerful new cuts expressed over a very large set of variables could be added, without increasing the complexity of the pricing subproblem or the size of the LPs that are actually solved. Computational results on benchmark instances from the OR-Library show very signi¯cant improvements over previous algorithms. Several open instances could be solved to optimalityNo keywords;

On green routing and scheduling problem

The vehicle routing and scheduling problem has been studied with much interest within the last four decades. In this paper, some of the existing literature dealing with routing and scheduling problems with environmental issues is reviewed, and a description is provided of the problems that have been investigated and how they are treated using combinatorial optimization tools

A New Dantzig-Wolfe Reformulation And Branch-And-Price Algorithm For The Capacitated Lot Sizing Problem With Set Up Times

The textbook Dantzig-Wolfe decomposition for the Capacitated LotSizing Problem (CLSP),as already proposed by Manne in 1958, has animportant structural deficiency. Imposingintegrality constraints onthe variables in the full blown master will not necessarily givetheoptimal IP solution as only production plans which satisfy theWagner-Whitin condition canbe selected. It is well known that theoptimal solution to a capacitated lot sizing problem willnotnecessarily have this Wagner-Whitin property. The columns of thetraditionaldecomposition model include both the integer set up andcontinuous production quantitydecisions. Choosing a specific set upschedule implies also taking the associated Wagner-Whitin productionquantities. We propose the correct Dantzig-Wolfedecompositionreformulation separating the set up and productiondecisions. This formulation gives the samelower bound as Manne'sreformulation and allows for branch-and-price. We use theCapacitatedLot Sizing Problem with Set Up Times to illustrate our approach.Computationalexperiments are presented on data sets available from theliterature. Column generation isspeeded up by a combination of simplexand subgradient optimization for finding the dualprices. The resultsshow that branch-and-price is computationally tractable andcompetitivewith other approaches. Finally, we briefly discuss how thisnew Dantzig-Wolfe reformulationcan be generalized to other mixedinteger programming problems, whereas in theliterature,branch-and-price algorithms are almost exclusivelydeveloped for pure integer programmingproblems.branch-and-price;Lagrange relaxation;Dantzig-Wolfe decomposition;lot sizing;mixed-integer programming

A large neighbourhood based heuristic for two-echelon routing problems

In this paper, we address two optimisation problems arising in the context of city logistics and two-level transportation systems. The two-echelon vehicle routing problem and the two-echelon location routing problem seek to produce vehicle itineraries to deliver goods to customers, with transits through intermediate facilities. To efficiently solve these problems, we propose a hybrid metaheuristic which combines enumerative local searches with destroy-and-repair principles, as well as some tailored operators to optimise the selections of intermediate facilities. We conduct extensive computational experiments to investigate the contribution of these operators to the search performance, and measure the performance of the method on both problem classes. The proposed algorithm finds the current best known solutions, or better ones, for 95% of the two-echelon vehicle routing problem benchmark instances. Overall, for both problems, it achieves high-quality solutions within short computing times. Finally, for future reference, we resolve inconsistencies between different versions of benchmark instances, document their differences, and provide them all online in a unified format

Two-echelon freight transport optimisation: unifying concepts via a systematic review

Multi-echelon distribution schemes are one of the most common strategies adopted by the transport companies in an aim of cost reduction, but their identification in scientific literature is not always easy due to a lack of unification. This paper presents the main concepts of two-echelon distribution via a systematic review, in the specific a meta-narrative analysis, in order to identify and unify the main concepts, issues and methods that can be helpful for scientists and transport practitioners. The problem of system cost optimisation in two-echelon freight transport systems is defined. Moreover, the main variants are synthetically presented and discussed. Finally, future research directions are proposed.location-routing problems, multi-echelon distribution, cross-docking, combinatorial optimisation, systematic review.