A computational comparison of algorithms for the inventory routing problem

The inventory routing problem is a distribution problem in which each customer maintains a local inventory of a product such as heating oil and consumes a certain amount of that product each day. Each day a fleet of trucks is dispatched over a set of routes to resupply a subset of the customers. In this paper, we describe and compare algorithms for this problem defined over a short planning period, e.g. one week. These algorithms define the set of customers to be serviced each day and produce routes for a fleet of vehicles to service those customers. Two algorithms are compared in detail, one which first allocates deliveries to days and then solves a vehicle routing problem and a second which treats the multi-day problem as a modified vehicle routing problem. The comparison is based on a set of real data obtained from a propane distribution firm in Pennsylvania. The solutions obtained by both procedures compare quite favorably with those in use by the firm.Part of this work was performed while this author was visiting the University of Waterloo.     

Ensuring service levels in routing problems with time windows and stochastic travel times

In the stochastic variant of the vehicle routing problem with time windows, known as the SVRPTW, travel times are assumed to be stochastic. In our chance-constrained approach to the problem, restrictions are placed on the probability that individual time window constraints are violated, while the objective remains based on traditional routing costs. In this paper, we propose a way to offer this probability, or service level, for all customers. Our approach carefully considers how to compute the start-service time and arrival time distributions for each customer. These distributions are used to create a feasibility check that can be “plugged” into any algorithm for the VRPTW and thus be used to solve large problems fairly quickly. Our computational experiments show how the solutions change for some well-known data sets across different levels of customer service, two travel time distributions, and several parameter settings.     

A heuristic algorithm for the free newspaper delivery problem

This paper addresses the problem of finding an effective distribution plan to deliver free newspapers from a production plant to subway, bus, or tram stations. The overall goal is to combine two factors: first, the free newspaper producing company wants to minimize the number of vehicle trips needed to distribute all newspapers produced at the production plant. Second, the company is interested in minimizing the time needed to consume all newspapers, i.e., the time needed to get all the newspapers taken by the final readers. The resulting routing problem combines aspects of the vehicle routing problem with time windows, the inventory routing problem, and additional constraints related to the production schedule. We propose a formulation and different heuristic approaches, as well as a hybrid method. Computational tests with real world data show that the hybrid method is the best in various problem settings.     

Heuristic algorithms for a complex parallel machine scheduling problem

In this work we present a new scheduling model for parallel machines, which extends the multiprocessor scheduling problem with release times for minimizing the total tardiness, and also extends the problem of vehicle routing with time windows. This new model is motivated by a resource allocation problem, which appears in the service sector. We present two class of heuristic algorithms for the solution of the problem, the first class is a class of greedy algorithms, the second class is based on the solutions of linear assignment problems. Furthermore we give a rescheduling algorithm, which improves a given feasible solution of the problem. This research has been supported by the Hungarian National Foundation for Scientific Research, Grant T046405.     

Symmetry helps: Bounded bi-directional dynamic programming for the elementary shortest path problem with resource constraints

When vehicle routing problems with additional constraints, such as capacity or time windows, are solved via column generation and branch-and-price, it is common that the pricing subproblem requires the computation of a minimum cost constrained path on a graph with costs on the arcs and prizes on the vertices. A common solution technique for this problem is dynamic programming. In this paper we illustrate how the basic dynamic programming algorithm can be improved by bounded bi-directional search and we experimentally evaluate the effectiveness of the enhancement proposed. We consider as benchmark problems the elementary shortest path problems arising as pricing subproblems in branch-and-price algorithms for the capacitated vehicle routing problem, the vehicle routing problem with distribution and collection and the capacitated vehicle routing problem with time windows.     

An iterated local search algorithm for the vehicle routing problem with convex time penalty functions

We propose an iterated local search algorithm for the vehicle routing problem with time window constraints. We treat the time window constraint for each customer as a penalty function, and assume that it is convex and piecewise linear. Given an order of customers each vehicle to visit, dynamic programming (DP) is used to determine the optimal start time to serve the customers so that the total time penalty is minimized. This DP algorithm is then incorporated in the iterated local search algorithm to efficiently evaluate solutions in various neighborhoods. The amortized time complexity of evaluating a solution in the neighborhoods is a logarithmic order of the input size (i.e., the total number of linear pieces that define the penalty functions). Computational comparisons on benchmark instances with up to 1000 customers show that the proposed method is quite effective, especially for large instances.     

Incorporating inventory and routing costs in strategic location models

We consider a supply chain design problem where the decision maker needs to decide the number and locations of the distribution centers (DCs). Customers face random demand, and each DC maintains a certain amount of safety stock in order to achieve a certain service level for the customers it serves. The objective is to minimize the total cost that includes location costs and inventory costs at the DCs, and distribution costs in the supply chain. We show that this problem can be formulated as a nonlinear integer programming model, for which we propose a Lagrangian relaxation based solution algorithm. By exploring the structure of the problem, we find a low-order polynomial algorithm for the nonlinear integer programming problem that must be solved in solving the Lagrangian relaxation sub-problems. We present computational results for several instances of the problem with sizes ranging from 40 to 320 customers. Our results show the benefits of having an integrated supply chain design framework that includes location, inventory, and routing decisions in the same optimization model.     

Vehicle routing problems on a line-shaped network with release time constraints

This work considers the vehicle routing problem on a line with the constraint that each customer is visited after its release time. It is already known that the single-vehicle case is polynomially solvable. We present polynomial time algorithms for two variants of the multi-vehicle case.     

Solving a real-world vehicle routing problem with multiple use of tractors and trailers and EU-regulations for drivers arising in air cargo road feeder services

In this paper we present two approaches for solving a real-world vehicle routing problem arising in the air cargo road feeder service business. The problem is to combine transportation tasks from a given timetable to trips which have to be assigned to tractors and which can be operated by tractor drivers respecting the restrictive rules on driving times from EC Regulation No. 561/2006. Tractor trips which start and end at the hub can be combined to multiple-trips which are operated by the same tractor. Also, to each trip a trailer has to be assigned which is compatible with all tasks in the trip. The primary objective is to minimize the number of required tractors, i.e. the number of multiple-trips. The methods developed are currently applied in practice.     

Local improvement in planar facility location using vehicle routing

In physical distribution the location of depots and vehicle routes are interdependent problems, but they are usually treated independently. Location-routing is the study of solving locational problems such that routing considerations are taken into account. We present an iterative heuristic for the location-routing problem on the plane. For each depot the Weber problem is solved using the end-points of the routes found previously as input nodes to the Weiszfeld procedure. Although the improvements found are usually small they show that it pays not to ignore the routing aspects when solving continuous location problems. Possible research avenues in continuous location-routing will also be suggested.     

An exact algorithm for a vehicle routing problem with time windows and multiple use of vehicles

The vehicle routing problem with multiple use of vehicles is a variant of the classical vehicle routing problem. It arises when each vehicle performs several routes during the workday due to strict time limits on route duration (e.g., when perishable goods are transported). The routes are defined over customers with a revenue, a demand and a time window. Given a fixed-size fleet of vehicles, it might not be possible to serve all customers. Thus, the customers must be chosen based on their associated revenue minus the traveling cost to reach them. We introduce a branch-and-price approach to address this problem where lower bounds are computed by solving the linear programming relaxation of a set packing formulation, using column generation. The pricing subproblems are elementary shortest path problems with resource constraints. Computational results are reported on euclidean problems derived from well-known benchmark instances for the vehicle routing problem with time windows.     

Approximation algorithms for a vehicle routing problem

In this paper we investigate a vehicle routing problem motivated by a real-world application in cooperation with the German Automobile Association (ADAC). The general task is to assign service requests to service units and to plan tours for the units such as to minimize the overall cost. The characteristics of this large-scale problem due to the data volume involve strict real-time requirements. We show that the problem of finding a feasible dispatch for service units starting at their current position and serving at most k requests is NP-complete for each fixed k ≥ 2. We also present a polynomial time (2k − 1)-approximation algorithm, where again k denotes the maximal number of requests served by a single service unit. For the boundary case when k equals the total number |E| of requests (and thus there are no limitations on the tour length), we provide a -approximation. Finally, we extend our approximation results to include linear and quadratic lateness costs.     

Integrated machine scheduling and vehicle routing with time windows

This paper integrates production and outbound distribution scheduling in order to minimize total tardiness. The overall problem consists of two subproblems. The first addresses scheduling a set of jobs on parallel machines with machine-dependent ready times. The second focusses on the delivery of completed jobs with a fleet of vehicles which may differ in their loading capacities and ready times. Job-dependent processing times, delivery time windows, service times, and destinations are taken into account. A genetic algorithm approach is introduced to solve the integrated problem as a whole. Two main questions are examined. Are the results of integrating machine scheduling and vehicle routing significantly better than those of classic decomposition approaches which break down the overall problem, solve the two subproblems successively, and merge the subsolutions to form a solution to the overall problem? And if so, is it possible to capitalize on these potentials despite the complexity of the integrated problem? Both questions are tackled by means of a numerical study. The genetic algorithm outperforms the classic decomposition approaches in case of small-size instances and is able to generate relatively good solutions for instances with up to 50 jobs, 5 machines, and 10 vehicles.     

A network-consistent time-dependent travel time layer for routing optimization problems

In the vehicle routing literature, there is an increasing focus on time-dependent routing problems, where the time (or cost) to travel between any pair of nodes (customers, depots) depends on the departure time. The aim of such algorithms is to be able to take recurring congestion into account when planning logistics operations. To test algorithms for time-dependent routing problems, time-dependent problem data is necessary. This data usually comes in the form of three-dimensional travel time matrices that add the departure time as an extra dimension. However, most currently available time-dependent travel time matrices are not network-consistent, i.e., the travel times are not correlated both in time and in space. This stands in contrast to the behavior of real life congestion, which generally follows a specific pattern, appearing in specific areas and then affecting all travel times to and from those areas. As a result of the lack of available network-consistent travel time matrices, it is difficult to develop algorithms that are able to take this special structure of the travel time data into account.     

Synchronized routing of seasonal products through a production/distribution network

This paper presents a multi-period vehicle routing problem for a large-scale production and distribution network. The vehicles must be routed in such a way as to minimize travel and inventory costs over a multi-period horizon, while also taking retailer demands and the availability of products at a central production facility into account. The network is composed of one distribution center and hundreds of retailers. Each retailer has its demand schedule representing the total number of units of a given product that should have been received on a given day. Many high value products are distributed. Product availability is determined by the production facility, whose production schedule determines how many units of each product must be available on a given day. To distribute these products, the routes of a heterogeneous fleet must be determined for a multiple period horizon. The objective of our research is to minimize the cost of distributing products to the retailers and the cost of maintaining inventory at the facility. In addition to considering product availability, the routing schedule must respect many constraints, such as capacity restrictions on the routes and the possibility of multiple vehicle trips over the time horizon. In the situation studied, no more than 20 product units could be carried by a single vehicle, which generally limited the number of retailers that could be supplied to one or two per route. This article proposes a mathematical formulation, as well as some heuristics, for solving this single-retailer-route vehicle routing problem. Extensions are then proposed to deal with the multiple-retailer-route situation.     

An approximation algorithm for the pickup and delivery vehicle routing problem on trees

This paper presents an approximation algorithm for a vehicle routing problem on a tree-shaped network with a single depot where there are two types of demands, pickup demand and delivery demand. Customers are located on nodes of the tree, and each customer has a positive demand of pickup and/or delivery.Demands of customers are served by a fleet of identical vehicles with unit capacity. Each vehicle can serve pickup and delivery demands. It is assumed that the demand of a customer is splittable, i.e., it can be served by more than one vehicle. The problem we are concerned with in this paper asks to find a set of tours of the vehicles with minimum total lengths. In each tour, a vehicle begins at the depot with certain amount of goods for delivery, visits a subset of the customers in order to deliver and pick up goods and returns to the depot. At any time during the tour, a vehicle must always satisfy the capacity constraint, i.e., at any time the sum of goods to be delivered and that of goods that have been picked up is not allowed to exceed the vehicle capacity. We propose a 2-approximation algorithm for the problem.     

A school bus scheduling problem

This paper introduces a school bus scheduling problem wherein trips for each school are given. A trip consists of a sequence of bus stops and their designated school. Each school has its fixed time window within which trips should be completed. A school bus can serve multiple trips for multiple schools. The school bus scheduling problem seeks to optimize bus schedules to serve all the given trips considering the school time windows. We first model the problem as a vehicle routing problem with time windows (VRPTW) by treating a trip as a virtual stop. Two assignment problem based exact approaches are then proposed for special cases and a heuristic algorithm is proposed for more general cases. Benchmark problems and computational experiments are presented. Computational experiments show the effectiveness of the proposed approaches.     

New mathematical models of the generalized vehicle routing problem and extensions

The generalized vehicle routing problem (GVRP) is an extension of the vehicle routing problem (VRP) and was introduced by Ghiani and Improta [1]. The GVRP is the problem of designing optimal delivery or collection routes from a given depot to a number of predefined, mutually exclusive and exhaustive node-sets (clusters) which includes exactly one node from each cluster, subject to capacity restrictions. The aim of this paper is to provide two new models of the GVRP based on integer programming. The first model, called the node formulation is similar to the Kara-Bekta? formulation [2], but produces a stronger lower bound. The second one, called the flow formulation, is completely new. We show as well that under specific circumstances the proposed models of the GVRP reduces to the well known routing problems. Finally, the GVRP is extended for the case in which the vertices of any cluster of each tour are contiguous. This case is defined as the clustered generalized vehicle routing problem and both of the proposed formulations of GVRP are adapted to clustered case.     

Planning and approximation models for delivery route based services with price-sensitive demands

Classical vehicle routing problems typically do not consider the impact of delivery price on the demand for delivery services. Existing models seek the minimum sum of tour lengths in order to serve the demands of a given set of customers. This paper proposes approximation models to estimate the impacts of price on delivery services when demand for delivery service is price dependent. Such models can serve as useful tools in the planning phase for delivery service providers and can assist in understanding the economics of delivery services. These models seek to maximize profit from delivery service, where price determines demand for deliveries as well as the total revenue generated by satisfying demand. We consider a variant of the model in which each customer’s delivery volume is price sensitive, as well as the case in which customer delivery volumes are fixed, but the total number of customers who select the delivery service provider is price sensitive. A third model variant allows the delivery service provider to select a subset of delivery requests at the offered price in order to maximize profit.     

The vehicle routing problem with flexible time windows and traveling times

We generalize the standard vehicle routing problem by allowing soft time window and soft traveling time constraints, where both constraints are treated as cost functions. With the proposed generalization, the problem becomes very general. In our algorithm, we use local search to determine the routes of vehicles. After fixing the route of each vehicle, we must determine the optimal start times of services at visited customers. We show that this subproblem is NP-hard when cost functions are general, but can be efficiently solved with dynamic programming when traveling time cost functions are convex even if time window cost functions are non-convex. We deal with the latter situation in the developed iterated local search algorithm. Finally we report computational results on benchmark instances, and confirm the benefits of the proposed generalization.