A Multistage Stochastic Programming Approach to the Dynamic and Stochastic VRPTW - Extended version

We consider a dynamic vehicle routing problem with time windows and stochastic customers (DS-VRPTW), such that customers may request for services as vehicles have already started their tours. To solve this problem, the goal is to provide a decision rule for choosing, at each time step, the next action to perform in light of known requests and probabilistic knowledge on requests likelihood. We introduce a new decision rule, called Global Stochastic Assessment (GSA) rule for the DS-VRPTW, and we compare it with existing decision rules, such as MSA. In particular, we show that GSA fully integrates nonanticipativity constraints so that it leads to better decisions in our stochastic context. We describe a new heuristic approach for efficiently approximating our GSA rule. We introduce a new waiting strategy. Experiments on dynamic and stochastic benchmarks, which include instances of different degrees of dynamism, show that not only our approach is competitive with state-of-the-art methods, but also enables to compute meaningful offline solutions to fully dynamic problems where absolutely no a priori customer request is provided.Comment: Extended version of the same-name study submitted for publication in conference CPAIOR201

A Vehicle Routing Problem with Multiple Service Agreements

We consider a logistics service provider which arranges transportation services to customers with different service agreements. The most prominent feature of this service agreement is the time period in which these customers send their orders and want to retrieve delivery information. After customers place their orders, they require information about the driver and an early indication of the arrival times. At the moment, this information needs to be provided. The order information of other customers with a different service agreement that needs to be serviced in the same period might still be unknown. Ultimately all customers have to be planned, constrained by the information provided to the customers in the earlier stage. In this paper, we investigate how the logistic service provider plans its routes and communicates the driver and arrival time information in the phase where not all customers are known (stage 1). Once all customer orders are known (stage 2), the final routes can be determined, which adhere to the already communicated driver and arrival time information from stage 1, minimizing total routing cost. For this problem, an exact algorithm is presented. This problem is solved using a novel tractable branch-and-bound method and re-optimization in stage 2. Detailed results are presented, showing the improvements of using re-optimization. We show that integrating the planning of the customers with the different service agreements leads to significant cost savings compared to treating the customers separately (as is currently done by most logistics service providers).</p

Integrated Approach to Assignment, Scheduling and Routing Problems in a Sales Territory Business Plan

AbstractThis paper considers a real life case study that determines the minimum number of sellers required to attend a set of customers located in a certain region taking into account the weekly schedule plan of the visits, as well as the optimal route. The problem is formulated as a combination of assignment, scheduling and routing problems. In the new formulation, case studies of small size subset of customers of the above type can be solved optimally. However, this subset of customers is not representative within the business plan of the company. To overcome this limitation, the problem is divided into three phases. A greedy algorithm is used in Phase I in order to identify a set of cost-effective feasible clusters of customers assigned to a seller. Phase II and III are then used to solve the problem of a weekly program for visiting the customers as well as to determine the route plan using MILP formulation. Several real life instances of different sizes have been solved demonstrating the efficiency of the proposed approach

Time and timing in vehicle routing problems

The distribution of goods to a set of geographically dispersed customers is a common problem faced by carrier companies, well-known as the Vehicle Routing Problem (VRP). The VRP consists of finding an optimal set of routes that minimizes total travel times for a given number of vehicles with a fixed capacity. Given the demand of each customer and a depot, the optimal set of routes should adhere to the following conditions: ?? Each customer is visited exactly once by exactly one vehicle. ?? All vehicle routes start and end at the depot. ?? Every route has a total demand not exceeding the vehicle capacity. The travel times between any two potential locations are given as input to the problem. Consequently, the total travel is computed by summing up the travel time over the chosen routes. In reality, carrier companies are faced with a number of other issues not conveyed in the VRP. The research in this thesis introduces a number of realistic variants of the VRP. These variants consider the VRP as a core component and incorporate additional features. By definition the VRP is NP-hard. Throughout the years a vast amount of research was aimed at developing both exact and heuristic solution procedures. Building on this established literature, solution procedures are developed to fit the variants proposed in this thesis. The standard VRP considers that the travel time between any pair of locations is constant throughout the day. However, congestion is present in most road networks. Considering traffic congestion results in time-dependent travel times, where the travel time between two location depends not only on the distance between them but also on the time of day one chooses to traverse this distance. Time-dependent travel times are considered in Chapters 2 and 3 of this thesis. Thus, in these Chapters we incorporate the time dimension into the VRP. The standard VRP does not take into account any customer service aspect. The customers are presumed to be available to receive their goods upon arrival of the vehicles. However, a number of carrier companies quote their expected arrival time to their customers. We introduce the concept of self-imposed time windows (SITW). SITW reflect the fact that the carrier company decides on when to visit the customer and communicates this to the customer. Once a time window is quoted to a customer the carrier company strives to provide service within this time window. SITW differ from time windows in the widely studied VRP with time windows (VRPTW), as the latter are exogenous constraints. In Chapters 4 and 5 SITW are endogenous decisions in stochastic environments. Thus, in addition to the sequencings decisions required by the VRP further timing decisions are needed. This thesis extends the VRP in two major dimensions: time-dependent travel times and self-imposed time windows. In reality carrier companies are faced with various uncertainties. The presented models incorporated some of these uncertainties by addressing three stochastic aspects: (I) In Chapter 3 stochastic service times are considered. (II) In Chapter 4, stochasticity in travel time is modeled to describes variability caused by random events such as car accidents or vehicle break down. (III) Finally, in Chapter 5 the objective was to construct a long term plan for providing consistent service to reoccurring customers. Stochasticity in this thesis is treated in an a priori manner. The plan, consisting of routes and timing decisions where necessary, is determined beforehand and is not modified according to the realization of the random events. Chapter 2 addresses environmental concerns by studying CO2 emissions in a timedependent vehicle routing problem environment. In addition to the decisions required for the assignment and scheduling of customers to vehicles, the vehicle speed limit is considered. The emissions per kilometer as a function of speed, is a function with a unique minimum speed v*. However, we show that limiting vehicle speed to this v* might be sub-optimal, in terms of total emissions. We adapted a Tabu search procedure for the proposed model. Furthermore, upper and lower bounds on the total amount of emissions that may be saved are presented. Quantifying the tradeoff between minimizing travel time as opposed to CO2 emissions is an important contribution. Another important contribution lies in incorporating fuel costs in the optimization. As fuel costs are correlated with CO2 emissions, Chapter 2 shows that even in today’s cost structure limiting vehicle speeds is beneficial. Chapter 3 defines the perturbed time-dependent VRP (P-TDVRP) model which is designed to handle unexpected delays at the various customer locations. A solution method that combines disruptions in a Tabu Search procedure is proposed. In Chapter 3 we identify situations capable of absorbing delays. i.e. where inserting a delay will lead to an increase in travel time that is less than the delay length itself. Based on this, assumptions with respect to the solution structure of P-TDVRP are formulated and validated. Furthermore, most experiments showed that the additional travel time required by the P-TDVRP, when compared to the travel time required by the TDVRP, was justified. In Chapter 4 the notion of self imposed time windows is defined and embedded in the VRP-SITW model. The objective of this problem is to minimize delay costs (caused by late arrivals at customers) as well as traveling time. The problem is optimized under various disruptions in travel times. The basic mechanism of dealing with these disruptions is allocating time buffers throughout the routes. Thus, additional timing decisions are taken. The time buffers attempt to reduce potential damage of disruptions. The solution approach combines a linear programming model with a local search heuristic. In Chapter 4, two main types of experiments were conducted: one compares the VRP with VRP-SITW while the other compares VRPTW with VRPSITW. The first set of experiments assessed the increase in operational costs caused by incorporating SITW in the VRP. The second set of experiments enabled evaluating the savings in operational costs by using flexible time windows, when compared to the VRPTW. Chapter 5 extends the customer service dimension by considering the consistent vehicle routing problem. Consistency is defined by having the same driver visiting the same customers at roughly the same time. As such, two main dimensions of consistency are identified in the literature, driver- and temporal consistency. In Chapter 5, driver consistency is imposed by having the same driver visit the same customers. Furthermore, we impose temporal consistency by SITW. A stochastic programming formulation is presented for the consistent VRP with stochastic customers. An exact solution method is proposed by adapting the 0-1 integer L- shaped algorithm to the problem. The method was able to solve the majority of test instances to optimality