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Vehicle routing with probabilistic capacity constraints

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  • Noorizadegan, Mahdi
  • Chen, Bo

Abstract

In this paper, we study chance-constraint vehicle routing with stochastic demands. We propose a set-partitioning formulation for the underlying problem and solve it via a branch-and-price method. Our method is flexible in modeling different types of demand randomness while ensuring that the resulting problem is tractable. An extensive computational analysis, which includes simulation tests and a sensitivity analysis, is carried out to investigate the solution quality and computational efficiency. Some large instances of the underlying problems from the VRP library are solved to optimality for the first time. Our sensitivity analysis provides some useful insights about the impact of the probability of route failure on the decision variables, the expected cost and the route reliability.

Suggested Citation

  • Noorizadegan, Mahdi & Chen, Bo, 2018. "Vehicle routing with probabilistic capacity constraints," European Journal of Operational Research, Elsevier, vol. 270(2), pages 544-555.
    • Handle: RePEc:eee:ejores:v:270:y:2018:i:2:p:544-555
    DOI: 10.1016/j.ejor.2018.04.010
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    4. Florio, Alexandre M. & Gendreau, Michel & Hartl, Richard F. & Minner, Stefan & Vidal, Thibaut, 2023. "Recent advances in vehicle routing with stochastic demands: Bayesian learning for correlated demands and elementary branch-price-and-cut," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1081-1093.
    5. Luciano Costa & Claudio Contardo & Guy Desaulniers, 2019. "Exact Branch-Price-and-Cut Algorithms for Vehicle Routing," Transportation Science, INFORMS, vol. 53(4), pages 946-985, July.

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