Stochastic Vehicle Routing Research
 

 
In this research, we focus on vehicle routing and scheduling problems for systems that face an uncertain operational environment. We propose both new techniques for the analysis of such systems, and also simple (yet effective) real-time operating strategies.


The Vehicle Routing Problem with Stochastic Demands and Duration Constraints
to appear, Transportation Science , 2010.
(w/ J. Morales and M.W.P. Savelsbergh)

This paper studies the vehicle routing problem with stochastic demands, focusing on vehicle tour duration constraints. In most stochastic routing research, vehicle tour durations are ignored and thus may lead to impractical plans that are not feasible to operate in practice. This paper proposes an approach that preserves vehicle duration feasibility for all scenarios in some user-specified set of uncertain outcomes, and develops fast methods for determining whether by this definition a vehicle tour is robust. The ideas are used within a metaheuristic search for good robust solutions.
 

Fixed Routes with Backup Vehicles for Stochastic Vehicle Routing Problems with Time Constraints
Networks , 2009.
(w/ E. Uyar and M.W.P. Savelsbergh)

This paper studies vehicle routing problem with stochastic demands that include hard time constraints, including customer time window constraints. Traditional recourse policies developed for VRPSD problems are not appropriate when customers have hard time windows, or when vehicles have hard duration constraints, since recourse strategies which require the vehicle to return to the depot to reload are likely to be time infeasible in practice in these settings. We propose an alternative strategy, where two vehicles are assigned a priori to each customer and operational routes are constructed without violating the a priori assignment. We show that this strategy effectively hedges risk, and does not result in costs much worse than a full reoptimization strategy.
 

A Paired-Vehicle Recourse Strategy for the Vehicle Routing Problem with Stochastic Demands

Transportation Science, 2007.
(w/ A. Ak)

This paper develops a simple real-time operating strategy for the load-constrained vehicle routing with uncertain demands, denoted the paired locally-coordinated (PLC) strategy, where vehicles operate in pairs to achieve risk pooling benefits. The paper provides (1) the specification of a paired-vehicle strategy that requires minimal coordination; (2) the development of a tabu search metaheuristic for near-optimal configuration; and (3) a demonstration of the cost-reduction potential of the PLC strategy, showing operating cost reductions of 5% to 18% for large-scale problems.
 

A Dynamic Scheme for Stochastic Vehicle Routing

Technical Report, 2006.
(w/ C.F. Daganzo)

This paper develops an analyzes via continuous approximations a vehicle-sharing strategy for stochastic vehicle routing problems with uncertain customers and demands. Specifically, the paper provides (1) the development of an operating strategy denoted threshold global sharing (TGS) which jointly replans the full vehicle fleet at a single decision epoch; (2) the development of an approximation approach for determining a near-optimal configuration of a system operating under the TGS scheme; and (3) a demonstration of the cost-reduction potential of the TGS scheme by comparison to a traditional operating strategy, showing using a set of representative test problems that reductions of 29% to 82% in the fleet size penalty due to uncertainty and 15% to 45% in the expected travel distance penalty are achievable.
 

On Planning and Design of Logistics Systems for Uncertain Environments
in M.G. Speranza and P. Stahly, editors, New Trends in Distribution Logistics, volume 480 of Lecture Notes in Economics and Mathematical Systems, Springer-Verlag, 1999.
(w/ C.F. Daganzo)

This paper proposes a systematic approach for the design and control of stochastic logistics problems, focusing on the key importance of determining simple yet effective real-time control policies. Since many effective control policies lead to intractable stochastic optimization problems, the paper proposes to use approximation approaches to configure system designs. Examples are provided for simple location-allocation problems and stochastic vehicle routing with uncertain customer demand.