A heuristic algorithm for optimal fleet composition with vehicle routing considerations

This paper proposes a fast heuristic algorithm for solving a combined optimal fleet composition and multi-period vehicle routing problem. The aim of the problem is to determine an optimal fleet mix, together with the corresponding vehicle routes, to minimize total cost subject to various customer delivery requirements and vehicle capacity constraints. The total cost includes not only the fixed, variable, and transportation costs associated with operating the fleet, but also the hiring costs incurred whenever vehicle requirements exceed fleet capacity. Although the problem under consideration can be formulated as a mixed-integer linear program (MILP), the MILP formulation for realistic problem instances is too large to solve using standard commercial solvers such as the IBM ILOG CPLEX optimization tool. Our proposed heuristic decomposes the problem into two tractable stages: in the first (outer) stage, the vehicle routes are optimized using cross entropy; in the second (inner) stage, the optimal fleet mix corresponding to a fixed set of routes is determined using dynamic programming and golden section search. Numerical results show that this heuristic approach generates high-quality solutions and significantly outperforms CPLEX in terms of computational speed

Optimal Fleet Size And Mix For A Rental Car Company

In this paper, a linear programming model for optimizing the fleet size and mix for a rental car company is developed and solved. Rental car companies depend on their fleet of vehicles for generating the entirety of their income. Additionally, the investments required are typically very significant due to the high cost of vehicles. Consequently, the composition of the fleet could significantly affect the company’s profitability and sustainability in a volatile demand environment. Determining the optimal fleet size and mix has been the focus of research in particular in revenue and yield management and VRP streams. However, most models focused on cost minimization without taking into account the resale value of vehicles once retired from the fleet. This paper addresses the problem from a return maximization perspective while taking into account resale values of vehicles. Sensitivity analysis is carried out to gain further insight into the problem and enable the model to support the company’s management in refining the strategic plan

A concise guide to existing and emerging vehicle routing problem variants

Vehicle routing problems have been the focus of extensive research over the past sixty years, driven by their economic importance and their theoretical interest. The diversity of applications has motivated the study of a myriad of problem variants with different attributes. In this article, we provide a concise overview of existing and emerging problem variants. Models are typically refined along three lines: considering more relevant objectives and performance metrics, integrating vehicle routing evaluations with other tactical decisions, and capturing fine-grained yet essential aspects of modern supply chains. We organize the main problem attributes within this structured framework. We discuss recent research directions and pinpoint current shortcomings, recent successes, and emerging challenges

Thirty years of heterogeneous vehicle routing

It has been around thirty years since the heterogeneous vehicle routing problem was introduced, and significant progress has since been made on this problem and its variants. The aim of this survey paper is to classify and review the literature on heterogeneous vehicle routing problems. The paper also presents a comparative analysis of the metaheuristic algorithms that have been proposed for these problems

Mixed Integer Programming Approaches to Novel Vehicle Routing Problems

This thesis explores two main topics. The first is how to incorporate data on meteorological forecasts, traffic patterns, and road network topology to utilize deicing resources more efficiently. Many municipalities throughout the United States find themselves unable to treat their road networks fully during winter snow events. Further, as the global climate continues to change, it is expected that both the number and severity of extreme winter weather events will increase for large portions of the US.We propose to use network flows, resource allocation, and vehicle routing mixed integer programming approaches to be able to incorporate all of these data in a winter road maintenance framework. We also show that solution approaches which have proved useful in network flows and vehicle routing problems can be adapted to construct high-quality solutions to this new problem quickly. These approaches are validated on both random and real-world instances using data from Knoxville, TN.In addition to showing that these approaches can be used to allocate resources effectively given a certain deicing budget, we also show that these same approaches can be used to help determine a resource budget given some allocation utility score. As before, we validate these approaches using random and real-world instances in Knoxville, TN.The second topic considered is formulating mixed integer programming models which can be used to route automated electric shuttles. We show that these models can also be used to determine fleet composition and optimal vehicle characteristics to accommodate various demand scenarios. We adapt popular vehicle routing solution techniques to these models, showing that these strategies continue to be relevant and robust. Lastly, we validate these techniques by looking at a case study in Greenville, SC, which recently received a grant from the Federal Highway Administration to deploy a fleet of automated electric shuttles in three neighborhoods

An Adaptive Tabu Search Heuristic for the Location Routing Pickup and Delivery Problem with Time Windows with a Theater Distribution Application

The time constrained pickup and delivery problem (PDPTW) is a problem of finding a set of routes for a fleet of vehicles in order to satisfy a set of transportation requests. Each request represents a user-specified pickup and delivery location. The PDPTW may be used to model many problems in logistics and public transportation. The location routing problem (LRP) is an extension of the vehicle routing problem where the solution identifies the optimal location of the depots and provides the vehicle schedules and distribution routes. This dissertation seeks to blend the PDPTW and LRP areas of research and formulate a location scheduling pickup and delivery problem with time windows (LPDPTW) in order to model the theater distribution problem and find excellent solutions. This research utilizes advanced tabu search techniques, including reactive tabu search and group theory applications, to develop a heuristic procedure for solving the LPDPTW. Tabu search is a metaheuristic that performs an intelligent search of the solution space. Group theory provides the structural foundation that supports the efficient search of the neighborhoods and movement through the solution space