IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v152y2021ics1366554521001514.html
   My bibliography  Save this article

Vehicle routing problem with zone-based pricing

Author

Listed:
  • Afsar, Hasan Murat
  • Afsar, Sezin
  • Palacios, Juan José

Abstract

In this paper we study the vehicle routing problem with zone-based pricing where the transporter defines a service price for all customers in a geographical zone. Each customer accepts or rejects the transporter’s offer according to a personal threshold value. Once the customer accepts the offer, the delivery service becomes compulsory. Two decisions need to be made: the price per zone and the routing to serve all customers that accept that price. The objective is to maximize the profit, which is the difference of total service revenue and the routing costs. We present a mathematical model for the problem and propose a branch-and-price algorithm. A numerical analysis shows promising results on the proposed set of instances.

Suggested Citation

  • Afsar, Hasan Murat & Afsar, Sezin & Palacios, Juan José, 2021. "Vehicle routing problem with zone-based pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:transe:v:152:y:2021:i:c:s1366554521001514
    DOI: 10.1016/j.tre.2021.102383
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554521001514
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2021.102383?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. G. B. Dantzig & J. H. Ramser, 1959. "The Truck Dispatching Problem," Management Science, INFORMS, vol. 6(1), pages 80-91, October.
    2. Liu, Shixin & Qin, Shujin & Zhang, Ruiyou, 2018. "A branch-and-price algorithm for the multi-trip multi-repairman problem with time windows," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 25-41.
    3. Ahmadi-Javid, Amir & Amiri, Elahe & Meskar, Mahla, 2018. "A Profit-Maximization Location-Routing-Pricing Problem: A Branch-and-Price Algorithm," European Journal of Operational Research, Elsevier, vol. 271(3), pages 866-881.
    4. Yu, Yang & Wang, Sihan & Wang, Junwei & Huang, Min, 2019. "A branch-and-price algorithm for the heterogeneous fleet green vehicle routing problem with time windows," Transportation Research Part B: Methodological, Elsevier, vol. 122(C), pages 511-527.
    5. Guy Desaulniers & Fausto Errico & Stefan Irnich & Michael Schneider, 2016. "Exact Algorithms for Electric Vehicle-Routing Problems with Time Windows," Operations Research, INFORMS, vol. 64(6), pages 1388-1405, December.
    6. C Archetti & D Feillet & A Hertz & M G Speranza, 2009. "The capacitated team orienteering and profitable tour problems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(6), pages 831-842, June.
    7. Sarac, Abdulkadir & Batta, Rajan & Rump, Christopher M., 2006. "A branch-and-price approach for operational aircraft maintenance routing," European Journal of Operational Research, Elsevier, vol. 175(3), pages 1850-1869, December.
    8. Ponboon, Sattrawut & Qureshi, Ali Gul & Taniguchi, Eiichi, 2016. "Branch-and-price algorithm for the location-routing problem with time windows," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 1-19.
    9. Roberto Baldacci & Aristide Mingozzi & Roberto Roberti, 2011. "New Route Relaxation and Pricing Strategies for the Vehicle Routing Problem," Operations Research, INFORMS, vol. 59(5), pages 1269-1283, October.
    10. Bruce L. Golden & Larry Levy & Rakesh Vohra, 1987. "The orienteering problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 34(3), pages 307-318, June.
    11. George B. Dantzig & Philip Wolfe, 1960. "Decomposition Principle for Linear Programs," Operations Research, INFORMS, vol. 8(1), pages 101-111, February.
    12. Dominique Feillet & Pierre Dejax & Michel Gendreau, 2005. "Traveling Salesman Problems with Profits," Transportation Science, INFORMS, vol. 39(2), pages 188-205, May.
    13. Vansteenwegen, Pieter & Souffriau, Wouter & Oudheusden, Dirk Van, 2011. "The orienteering problem: A survey," European Journal of Operational Research, Elsevier, vol. 209(1), pages 1-10, February.
    14. Ahmadi-Javid, Amir & Hoseinpour, Pooya, 2015. "A location-inventory-pricing model in a supply chain distribution network with price-sensitive demands and inventory-capacity constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 238-255.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Yong & Luo, Siyu & Fan, Jianxin & Zhen, Lu, 2024. "The multidepot vehicle routing problem with intelligent recycling prices and transportation resource sharing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    2. Luka Matijević & Marko Đurasević & Domagoj Jakobović, 2023. "A Variable Neighborhood Search Method with a Tabu List and Local Search for Optimizing Routing in Trucks in Maritime Ports," Mathematics, MDPI, vol. 11(17), pages 1-22, August.
    3. Nikola Mardešić & Tomislav Erdelić & Tonči Carić & Marko Đurasević, 2023. "Review of Stochastic Dynamic Vehicle Routing in the Evolving Urban Logistics Environment," Mathematics, MDPI, vol. 12(1), pages 1-44, December.
    4. Fukasawa, Ricardo & Naoum-Sawaya, Joe & Oliveira, Daniel, 2024. "The price-elastic knapsack problem," Omega, Elsevier, vol. 124(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmadi-Javid, Amir & Amiri, Elahe & Meskar, Mahla, 2018. "A Profit-Maximization Location-Routing-Pricing Problem: A Branch-and-Price Algorithm," European Journal of Operational Research, Elsevier, vol. 271(3), pages 866-881.
    2. Ido Orenstein & Tal Raviv & Elad Sadan, 2019. "Flexible parcel delivery to automated parcel lockers: models, solution methods and analysis," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(5), pages 683-711, December.
    3. 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.
    4. Gunawan, Aldy & Lau, Hoong Chuin & Vansteenwegen, Pieter, 2016. "Orienteering Problem: A survey of recent variants, solution approaches and applications," European Journal of Operational Research, Elsevier, vol. 255(2), pages 315-332.
    5. Orlis, Christos & Laganá, Demetrio & Dullaert, Wout & Vigo, Daniele, 2020. "Distribution with Quality of Service Considerations: The Capacitated Routing Problem with Profits and Service Level Requirements," Omega, Elsevier, vol. 93(C).
    6. Rahma Lahyani & Mahdi Khemakhem & Frédéric Semet, 2017. "A unified matheuristic for solving multi-constrained traveling salesman problems with profits," EURO Journal on Computational Optimization, Springer;EURO - The Association of European Operational Research Societies, vol. 5(3), pages 393-422, September.
    7. Freeman, Nickolas K. & Keskin, Burcu B. & Çapar, İbrahim, 2018. "Attractive orienteering problem with proximity and timing interactions," European Journal of Operational Research, Elsevier, vol. 266(1), pages 354-370.
    8. Yang, Yu & Yan, Chiwei & Cao, Yufeng & Roberti, Roberto, 2023. "Planning robust drone-truck delivery routes under road traffic uncertainty," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1145-1160.
    9. Bian, Zheyong & Liu, Xiang, 2018. "A real-time adjustment strategy for the operational level stochastic orienteering problem: A simulation-aided optimization approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 246-266.
    10. Kobeaga, Gorka & Rojas-Delgado, Jairo & Merino, María & Lozano, Jose A., 2024. "A revisited branch-and-cut algorithm for large-scale orienteering problems," European Journal of Operational Research, Elsevier, vol. 313(1), pages 44-68.
    11. Racha El-Hajj & Rym Nesrine Guibadj & Aziz Moukrim & Mehdi Serairi, 2020. "A PSO based algorithm with an efficient optimal split procedure for the multiperiod vehicle routing problem with profit," Annals of Operations Research, Springer, vol. 291(1), pages 281-316, August.
    12. Yu, Bin & Shan, Wenxuan & Sheu, Jiuh-Biing & Diabat, Ali, 2022. "Branch-and-price for a combined order selection and distribution problem in online community group-buying of perishable products," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 341-373.
    13. Michael D. Moskal & Erdi Dasdemir & Rajan Batta, 2023. "Unmanned Aerial Vehicle Information Collection Missions with Uncertain Characteristics," INFORMS Journal on Computing, INFORMS, vol. 35(1), pages 120-137, January.
    14. Tilk, Christian & Drexl, Michael & Irnich, Stefan, 2019. "Nested branch-and-price-and-cut for vehicle routing problems with multiple resource interdependencies," European Journal of Operational Research, Elsevier, vol. 276(2), pages 549-565.
    15. Zu-Jun Ma & Fei Yang & Ying Dai & Zuo-Jun Max Shen, 2021. "The Migratory Beekeeping Routing Problem: Model and an Exact Algorithm," INFORMS Journal on Computing, INFORMS, vol. 33(1), pages 319-335, January.
    16. Archetti, Claudia & Corberán, Ángel & Plana, Isaac & Sanchis, José Maria & Speranza, M. Grazia, 2015. "A matheuristic for the Team Orienteering Arc Routing Problem," European Journal of Operational Research, Elsevier, vol. 245(2), pages 392-401.
    17. Lei, Chao & Lin, Wei-Hua & Miao, Lixin, 2014. "A multicut L-shaped based algorithm to solve a stochastic programming model for the mobile facility routing and scheduling problem," European Journal of Operational Research, Elsevier, vol. 238(3), pages 699-710.
    18. Wouter Souffriau & Pieter Vansteenwegen & Greet Vanden Berghe & Dirk Van Oudheusden, 2013. "The Multiconstraint Team Orienteering Problem with Multiple Time Windows," Transportation Science, INFORMS, vol. 47(1), pages 53-63, February.
    19. Balcik, Burcu, 2017. "Site selection and vehicle routing for post-disaster rapid needs assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 30-58.
    20. Stavropoulou, F. & Repoussis, P.P. & Tarantilis, C.D., 2019. "The Vehicle Routing Problem with Profits and consistency constraints," European Journal of Operational Research, Elsevier, vol. 274(1), pages 340-356.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:152:y:2021:i:c:s1366554521001514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.