An Exact Algorithm for a Rich Vehicle Routing Problem with Private Fleet and Common Carrier

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

The Vehicle Routing Problem with Private Fleet and Common Carrier (VRPPC) is a generalization of the classical Vehicle Routing Problem in which the owner of a private fleet can either visit a customer with one of his vehicles or assign the customer to a common carrier. The latter case occurs if the demand exceeds the total capacity of the private fleet or if it is more economically convenient to do so. The owner's objective is to minimize the variable and fixed costs for operating his fleet plus the total cost charged by the common carrier. This family of problems has many practical applications, particularly in the design of last mile distribution services, and has received some attention in the literature, where some heuristics were proposed. We extend here the VRPPC by considering more realistic cost structures that account for quantity discounts on outsourcing costs and by considering time windows resulting in a Rich VRPPC (RVRPPC). We present an exact approach based on a branch-and-cut-and-price algorithm for the RVRPPC, and test the algorithm on instances from the literature.
Original languageEnglish
Pages (from-to)986–1000
JournalTransportation Science
Volume53
Issue number4
DOIs
Publication statusPublished - 4 Aug 2019

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common carrier
Vehicle routing
customer
costs
Costs
cost structure
outsourcing
heuristics
Outsourcing
demand
literature

Keywords

  • Vehicle Routing
  • Exact algorithms

Cite this

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abstract = "The Vehicle Routing Problem with Private Fleet and Common Carrier (VRPPC) is a generalization of the classical Vehicle Routing Problem in which the owner of a private fleet can either visit a customer with one of his vehicles or assign the customer to a common carrier. The latter case occurs if the demand exceeds the total capacity of the private fleet or if it is more economically convenient to do so. The owner's objective is to minimize the variable and fixed costs for operating his fleet plus the total cost charged by the common carrier. This family of problems has many practical applications, particularly in the design of last mile distribution services, and has received some attention in the literature, where some heuristics were proposed. We extend here the VRPPC by considering more realistic cost structures that account for quantity discounts on outsourcing costs and by considering time windows resulting in a Rich VRPPC (RVRPPC). We present an exact approach based on a branch-and-cut-and-price algorithm for the RVRPPC, and test the algorithm on instances from the literature.",
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An Exact Algorithm for a Rich Vehicle Routing Problem with Private Fleet and Common Carrier. / Dabia, Said; Lai, D.S.W.; Vigo, D.

In: Transportation Science, Vol. 53, No. 4, 04.08.2019, p. 986–1000.

Research output: Contribution to JournalArticleAcademicpeer-review

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