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The multi-period vehicle routing problem with refueling decisions: Traveling further to decrease fuel cost?

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  • Neves-Moreira, Fábio
  • Amorim-Lopes, Mário
  • Amorim, Pedro

Abstract

Most vehicle routing approaches disregard the need to refuel fleets. However, planners search for opportunities to refuel at lower prices even if, counter-intuitively, distant fuel stations need to be visited. We propose a novel mathematical formulation and develop branch-and-cut and matheuristic algorithms to efficiently tackle this problem. Results indicate that, to minimize costs, detour distances may increase up to 6 percentage points when fuel stations with lower prices are farther away from the depot. For practice, these insights imply that current policies disregarding station location and/or fuel prices along with “myopic” planning horizons may lead to sub-optimal decisions.

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  • Neves-Moreira, Fábio & Amorim-Lopes, Mário & Amorim, Pedro, 2020. "The multi-period vehicle routing problem with refueling decisions: Traveling further to decrease fuel cost?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:transe:v:133:y:2020:i:c:s1366554519306702
    DOI: 10.1016/j.tre.2019.11.011
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    References listed on IDEAS

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