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Flexibility and complexity in periodic distribution problems

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  • Peter Francis
  • Karen Smilowitz
  • Michal Tzur

Abstract

In this paper, we explore trade‐offs between operational flexibility and operational complexity in periodic distribution problems. We consider the gains from operational flexibility in terms of vehicle routing costs and customer service benefits, as well as the costs of operational complexity in terms of modeling, solution methods, and implementation challenges for drivers and customers. The period vehicle routing problem (PVRP) is a variation of the classic vehicle routing problem in which delivery routes are constructed for a period of time; the PVRP with service choice (PVRP‐SC) extends the PVRP to allow service (visit) frequency to become a decision of the model. For the periodic distribution problems represented by PVRP and PVRP‐SC, we introduce operational flexibility levers and a set of quantitative measures to evaluate the trade‐offs between flexibility and complexity. We develop a Tabu Search heuristic to incorporate a range of operational flexibility options. We analyze the potential value and the increased operational complexity of the flexibility levers. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2007

Suggested Citation

  • Peter Francis & Karen Smilowitz & Michal Tzur, 2007. "Flexibility and complexity in periodic distribution problems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(2), pages 136-150, March.
    • Handle: RePEc:wly:navres:v:54:y:2007:i:2:p:136-150
    DOI: 10.1002/nav.20195
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    References listed on IDEAS

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    1. Michel Gendreau & Alain Hertz & Gilbert Laporte, 1994. "A Tabu Search Heuristic for the Vehicle Routing Problem," Management Science, INFORMS, vol. 40(10), pages 1276-1290, October.
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    6. Peter Francis & Karen Smilowitz & Michal Tzur, 2006. "The Period Vehicle Routing Problem with Service Choice," Transportation Science, INFORMS, vol. 40(4), pages 439-454, November.
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    Cited by:

    1. Attila A. Kovacs & Bruce L. Golden & Richard F. Hartl & Sophie N. Parragh, 2015. "The Generalized Consistent Vehicle Routing Problem," Transportation Science, INFORMS, vol. 49(4), pages 796-816, November.
    2. Jeffrey W. Ohlmann & Michael J. Fry & Barrett W. Thomas, 2008. "Route Design for Lean Production Systems," Transportation Science, INFORMS, vol. 42(3), pages 352-370, August.
    3. Karen Smilowitz & Maciek Nowak & Tingting Jiang, 2013. "Workforce Management in Periodic Delivery Operations," Transportation Science, INFORMS, vol. 47(2), pages 214-230, May.
    4. Vera C. Hemmelmayr & Karl F. Doerner & Richard F. Hartl & Daniele Vigo, 2014. "Models and Algorithms for the Integrated Planning of Bin Allocation and Vehicle Routing in Solid Waste Management," Transportation Science, INFORMS, vol. 48(1), pages 103-120, February.
    5. Ann-Kathrin Rothenbächer, 2019. "Branch-and-Price-and-Cut for the Periodic Vehicle Routing Problem with Flexible Schedule Structures," Transportation Science, INFORMS, vol. 53(3), pages 850-866, May.

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