The Vehicle Routing Problem with Service Level Constraints

We consider a vehicle routing problem which seeks to minimize cost subject to service level constraints on several groups of deliveries. This problem captures some essential challenges faced by a logistics provider which operates transportation services for a limited number of partners and should respect contractual obligations on service levels. The problem also generalizes several important classes of vehicle routing problems with profits. To solve it, we propose a compact mathematical formulation, a branch-and-price algorithm, and a hybrid genetic algorithm with population management, which relies on problem-tailored solution representation, crossover and local search operators, as well as an adaptive penalization mechanism establishing a good balance between service levels and costs. Our computational experiments show that the proposed heuristic returns very high-quality solutions for this difficult problem, matches all optimal solutions found for small and medium-scale benchmark instances, and improves upon existing algorithms for two important special cases: the vehicle routing problem with private fleet and common carrier, and the capacitated profitable tour problem. The branch-and-price algorithm also produces new optimal solutions for all three problems

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

On the use of biased-randomized algorithms for solving non-smooth optimization problems

Soft constraints are quite common in real-life applications. For example, in freight transportation, the fleet size can be enlarged by outsourcing part of the distribution service and some deliveries to customers can be postponed as well; in inventory management, it is possible to consider stock-outs generated by unexpected demands; and in manufacturing processes and project management, it is frequent that some deadlines cannot be met due to delays in critical steps of the supply chain. However, capacity-, size-, and time-related limitations are included in many optimization problems as hard constraints, while it would be usually more realistic to consider them as soft ones, i.e., they can be violated to some extent by incurring a penalty cost. Most of the times, this penalty cost will be nonlinear and even noncontinuous, which might transform the objective function into a non-smooth one. Despite its many practical applications, non-smooth optimization problems are quite challenging, especially when the underlying optimization problem is NP-hard in nature. In this paper, we propose the use of biased-randomized algorithms as an effective methodology to cope with NP-hard and non-smooth optimization problems in many practical applications. Biased-randomized algorithms extend constructive heuristics by introducing a nonuniform randomization pattern into them. Hence, they can be used to explore promising areas of the solution space without the limitations of gradient-based approaches, which assume the existence of smooth objective functions. Moreover, biased-randomized algorithms can be easily parallelized, thus employing short computing times while exploring a large number of promising regions. This paper discusses these concepts in detail, reviews existing work in different application areas, and highlights current trends and open research lines

Hybrid Genetic Algorithm for Multi-Period Vehicle Routing Problem with Mixed Pickup and Delivery with Time Window, Heterogeneous Fleet, Duration Time and Rest Area

Most logistics industries are improving their technology and innovation in competitive markets in order to serve the various needs of customers more efficiently. However, logistics management costs are one of the factors that entrepreneurs inevitably need to reduce, so that goods and services are distributed to a number of customers in different locations effectively and efficiently. In this research, we consider the multi-period vehicle routing problem with mixed pickup and delivery with time windows, heterogeneous fleet, duration time and rest area (MVRPMPDDR). In the special case that occurs in this research, it is the rest area for resting the vehicle after working long hours of the day during transportation over multiple periods, for which with confidence no research has studied previously. We present a mixed integer linear programming model to give an optimal solution, and a meta-heuristic approach using a hybrid genetic algorithm with variable neighborhood search algorithm (GAVNS) has been developed to solve large-sized problems. The objective is to maximize profits obtained from revenue after deducting fuel cost, the cost of using a vehicle, driver wage cost, penalty cost and overtime cost. We prepared two algorithms, including a genetic algorithm (GA) and variable neighborhood search algorithm (VNS), to compare the performance of our proposed algorithm. The VNS is specially applied instead of the mutation operator in GA, because it can reduce duplicate solutions of the algorithms that increase the difficulty and are time-consuming. The numerical results show the hybrid genetic algorithm with variable neighborhood search algorithm outperforms all other proposed algorithms. This demonstrates that the proposed meta-heuristic is efficient, with reasonable computational time, and is useful not only for increasing profits, but also for efficient management of the outbound transportation logistics system

A statistical learning based approach for parameter fine-tuning of metaheuristics

Metaheuristics are approximation methods used to solve combinatorial optimization problems. Their performance usually depends on a set of parameters that need to be adjusted. The selection of appropriate parameter values causes a loss of efficiency, as it requires time, and advanced analytical and problem-specific skills. This paper provides an overview of the principal approaches to tackle the Parameter Setting Problem, focusing on the statistical procedures employed so far by the scientific community. In addition, a novel methodology is proposed, which is tested using an already existing algorithm for solving the Multi-Depot Vehicle Routing Problem.Peer ReviewedPostprint (published version

Improved Ant Colony Optimization for Seafood Product Delivery Routing Problem

This paper deals with a real-life vehicle delivery routing problem, which is a seafood product delivery routing problem. Considering the features of the seafood product delivery routing problem, this paper formulated this problem as a multi-depot open vehicle routing problem. Since the multi-depot open vehicle routing problem is a very complex problem, a method is used to reduce the complexity of the problem by changing the multi-depot open vehicle routing problem into an open vehicle routing problem with a dummy central depot in this paper. Then, ant colony optimization is used to solve the problem. To improve the performance of the algorithm, crossover operation and some adaptive strategies are used. Finally, the computational results for the benchmark problems of the multi-depot vehicle routing problem indicate that the proposed ant colony optimization is an effective method to solve the multi-depot vehicle routing problem. Furthermore, the computation results of the seafood product delivery problem from Dalian, China also suggest that the proposed ant colony optimization is feasible to solve the seafood product delivery routing problem

Survey on Ten Years of Multi-Depot Vehicle Routing Problems: Mathematical Models, Solution Methods and Real-Life Applications

A crucial practical issue encountered in logistics management is the circulation of final products from depots to end-user customers. When routing and scheduling systems are improved, they will not only improve customer satisfaction but also increase the capacity to serve a large number of customers minimizing time. On the assumption that there is only one depot, the key issue of distribution is generally identified and formulated as VRP standing for Vehicle Routing Problem. In case, a company having more than one depot, the suggested VRP is most unlikely to work out. In view of resolving this limitation and proposing alternatives, VRP with multiple depots and multi-depot MDVRP have been a focus of this paper. Carrying out a comprehensive analytical literature survey of past ten years on cost-effective Multi-Depot Vehicle Routing is the main aim of this research. Therefore, the current status of the MDVRP along with its future developments is reviewed at length in the paper

Workload Equity in Vehicle Routing Problems: A Survey and Analysis

Over the past two decades, equity aspects have been considered in a growing number of models and methods for vehicle routing problems (VRPs). Equity concerns most often relate to fairly allocating workloads and to balancing the utilization of resources, and many practical applications have been reported in the literature. However, there has been only limited discussion about how workload equity should be modeled in VRPs, and various measures for optimizing such objectives have been proposed and implemented without a critical evaluation of their respective merits and consequences. This article addresses this gap with an analysis of classical and alternative equity functions for biobjective VRP models. In our survey, we review and categorize the existing literature on equitable VRPs. In the analysis, we identify a set of axiomatic properties that an ideal equity measure should satisfy, collect six common measures, and point out important connections between their properties and those of the resulting Pareto-optimal solutions. To gauge the extent of these implications, we also conduct a numerical study on small biobjective VRP instances solvable to optimality. Our study reveals two undesirable consequences when optimizing equity with nonmonotonic functions: Pareto-optimal solutions can consist of non-TSP-optimal tours, and even if all tours are TSP optimal, Pareto-optimal solutions can be workload inconsistent, i.e. composed of tours whose workloads are all equal to or longer than those of other Pareto-optimal solutions. We show that the extent of these phenomena should not be underestimated. The results of our biobjective analysis are valid also for weighted sum, constraint-based, or single-objective models. Based on this analysis, we conclude that monotonic equity functions are more appropriate for certain types of VRP models, and suggest promising avenues for further research.Comment: Accepted Manuscrip