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The vehicle routing problem with service level constraints

Bulhões, Teobaldo and Ha, Minh Hoang and Martinelli, Rafael and Vidal, Thibaut (2017) The vehicle routing problem with service level constraints. European Journal of Operational Research . ISSN 0377-2217 (In Press)

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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.

Item Type: Article
Subjects: Information Technology (IT)
ISI-indexed journals
Divisions: Faculty of Information Technology (FIT)
Depositing User: Hà Minh Hoàng
Date Deposited: 16 Oct 2017 08:14
Last Modified: 16 Oct 2017 08:14

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