Heuristics and policies for online pickup and delivery problems

Master ThesisIn the last few decades, increased attention has been dedicated to a speci c subclass of Vehicle Routing Problems due to its signi cant importance in several transportation areas such as taxi companies, courier companies, transportation of people, organ transportation, etc. These problems are characterized by their dynamicity as the demands are, in general, unknown in advance and the corresponding locations are paired. This thesis addresses a version of such Dynamic Pickup and Delivery Problems, motivated by a problem arisen in an Australian courier company, which operates in Sydney, Melbourne and Brisbane, where almost every day more than a thousand transportation orders arrive and need to be accommodated. The rm has a eet of almost two hundred vehicles of various types, mostly operating within the city areas. Thus, whenever new orders arrive at the system the dispatchers face a complex decision regarding the allocation of the new customers within the distribution routes (already existing or new) taking into account a complex multi-level objective function. The thesis thus focuses on the process of learning simple dispatch heuristics, and lays the foundations of a recommendation system able to rank such heuristics. We implemented eight of these, observing di erent characteristics of the current eet and orders. It incorporates an arti cial neural network that is trained on two hundred days of past data, and is supervised by schedules produced by an oracle, Indigo, which is a system able to produce suboptimal solutions to problem instances. The system opens the possibility for many dispatch policies to be implemented that are based on this rule ranking, and helps dispatchers to manage the vehicles of the eet. It also provides results for the human resources required each single day and within the di erent periods of the day. We complement the quite promising results obtained with a discussion on future additions and improvements such as channel eet management, tra c consideration, and learning hyper-heuristics to control simple rule sequences.The thesis work was partially supported by the National ICT Australia according to the Visitor Research Agreement contract between NICTA and Martin Damyanov Aleksandro

Heuristics and policies for online pickup and delivery problems

Master ThesisIn the last few decades, increased attention has been dedicated to a speci c subclass of Vehicle Routing Problems due to its signi cant importance in several transportation areas such as taxi companies, courier companies, transportation of people, organ transportation, etc. These problems are characterized by their dynamicity as the demands are, in general, unknown in advance and the corresponding locations are paired. This thesis addresses a version of such Dynamic Pickup and Delivery Problems, motivated by a problem arisen in an Australian courier company, which operates in Sydney, Melbourne and Brisbane, where almost every day more than a thousand transportation orders arrive and need to be accommodated. The rm has a eet of almost two hundred vehicles of various types, mostly operating within the city areas. Thus, whenever new orders arrive at the system the dispatchers face a complex decision regarding the allocation of the new customers within the distribution routes (already existing or new) taking into account a complex multi-level objective function. The thesis thus focuses on the process of learning simple dispatch heuristics, and lays the foundations of a recommendation system able to rank such heuristics. We implemented eight of these, observing di erent characteristics of the current eet and orders. It incorporates an arti cial neural network that is trained on two hundred days of past data, and is supervised by schedules produced by an oracle, Indigo, which is a system able to produce suboptimal solutions to problem instances. The system opens the possibility for many dispatch policies to be implemented that are based on this rule ranking, and helps dispatchers to manage the vehicles of the eet. It also provides results for the human resources required each single day and within the di erent periods of the day. We complement the quite promising results obtained with a discussion on future additions and improvements such as channel eet management, tra c consideration, and learning hyper-heuristics to control simple rule sequences.The thesis work was partially supported by the National ICT Australia according to the Visitor Research Agreement contract between NICTA and Martin Damyanov Aleksandro

Sustainable Passenger Transportation: Dynamic Ride-Sharing

Ride-share systems, which aim to bring together travelers with similar itineraries and time schedules, may provide significant societal and environmental benefits by reducing the number of cars used for personal travel and improving the utilization of available seat capacity. Effective and efficient optimization technology that matches drivers and riders in real-time is one of the necessary components for a successful ride-share system. We formally define dynamic ride-sharing and outline the optimization challenges that arise when developing technology to support ride-sharing. We hope that this paper will encourage more research by the transportation science and logistics community in this exciting, emerging area of public transportation

Multitrip vehicle routing with delivery options: a data-driven application to the parcel industry

To make the last mile of parcel delivery more efficient, service providers offer an increasing number of modes of delivery as alternatives to the traditional and often cost-intensive home delivery service. Parcel lockers and pickup stations can be utilized to reduce the number of stops and avoid costly detours. To design smart delivery networks, service providers must evaluate different business models. In this context, a multitrip vehicle routing problem with delivery options and location-dependent costs arises. We present a data-driven framework to evaluate alternative delivery strategies, formulate a corresponding model and solve the problem heuristically using adaptive large neighborhood search. By examining large, real-life instances from a major European parcel service, we determine the potential and benefits of different delivery options. Specifically, we show that delivery costs can be mitigated by consolidating orders in pickup stations and illustrate how pricing can be applied to steer customer demand toward profitable, eco-friendly products

A Decision Support System for Efficient Last-Mile Distribution of Fresh Fruits and Vegetables as Part of E-Grocery Operations

Efficient last-mile distribution of fresh fruits and vegetables is a major challenge within e-grocery operations. This work presents a decision support system to jointly investigate the impact of various service offers on customer preferences and logistics operations. Results from a conjoint analysis surveying 531 end consumer are incorporated within an agent-based simulation. Delivery days, fees, time windows and discounts as well as guaranteed remaining shelf life of products at delivery are considered. To model shelf life and schedule deliveries, food quality models and vehicle routing procedures are further integrated within the system. Based on an e-grocery provider operating in Vienna, Austria, computational experiments investigate the impact of the offered delivery service on fulfilled demand, order volume and customer utility. Results indicate the importance of incorporating shelf life data within e-grocery operations and various potentials of considering customer preferences in logistics decision support systems