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Chapter 6 Vehicle Routing

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C.BarnhartandG.Laporte(Eds.),HandbookinOR&MS,Vol.14Copyright©2007ElsevierB.V.AllrightsreservedDOI:10.1016/S0927-0507(06)14006-2

Chapter6

VehicleRouting

Jean-FrançoisCordeau

CanadaResearchChairinLogisticsandTransportation,HECMontréal,3000chemindelaCôte-Sainte-Catherine,Montréal,H3T2A7,CanadaE-mail:Jean-Francois.Cordeau@hec.ca

GilbertLaporte

CanadaResearchChairinDistributionManagement,HECMontréal,3000chemindelaCôte-Sainte-Catherine,Montréal,H3T2A7,CanadaE-mail:gilbert@crt.umontreal.ca

MartinW.P.Savelsbergh

SchoolofIndustrialandSystemsEngineering,GeorgiaInstituteofTechnology,Atlanta,GA30332-0205,USAE-mail:mwps@isye.gatech.edu

DanieleVigo

DipartimentodiElettronica,InformaticaeSistemistica,UniversityofBologna,VialeRisorgimento2,40136Bologna,ItalyE-mail:dvigo@deis.umibo.it

1Introduction

Thevehicleroutingproblemliesattheheartofdistributionmanagement.Itisfacedeachdaybythousandsofcompaniesandorganizationsengagedinthedeliveryandcollectionofgoodsorpeople.Becauseconditionsvaryfromonesettingtothenext,theobjectivesandconstraintsencounteredinpracticearehighlyvariable.Mostalgorithmicresearchandsoftwaredevelopmentinthisareafocusonalimitednumberofprototypeproblems.Bybuildingenoughflexibilityinoptimizationsystemsonecanadaptthesetovariouspracticalcon-texts.

Muchprogresshasbeenmadesincethepublicationofthefirstarticleonthe“truckdispatching”problembyDantzigandRamser(1959).Severalvari-antsofthebasicproblemhavebeenputforward.Strongformulationshavebeenproposed,togetherwithpolyhedralstudiesandexactdecompositional-gorithms.Numerousheuristicshavealsobeendevelopedforvehicleroutingproblems.Inparticularthestudyofthisclassofproblemshasstimulatedtheemergenceandthegrowthofseveralmetaheuristicswhoseperformanceisconstantlyimproving.

Thischapterfocusesonsomeofthemostimportantvehicleroutingprob-lemtypes.Anumberofothervariantshavebeentreatedinrecentarticlesand

367

368J.-F.Cordeauetal.

bookchapters(see,e.g.,TothandVigo,2002a).Thepickupanddeliveryvehi-cleroutingproblem,whichhasalsobeenextensivelystudied,iscoveredinthe“TransportationonDemand”chapter.

Theremainderofthischapterisorganizedasfollows.Section2isdevotedtotheclassicalvehicleroutingproblem(simplyreferredtoasVRP),definedwithasingledepotandonlycapacityandroutelengthconstraints.ProblemswithtimewindowsaresurveyedinSection3.Section4isdevotedtoinventoryrout-ingproblemswhichcombineroutingandcustomerreplenishmentdecisions.Finally,Section5coversthefieldofstochasticvehicleroutinginwhichsomeoftheproblemdataarerandomvariables.2Theclassicalvehicleroutingproblem

TheClassicalVehicleRoutingProblem(VRP)isoneofthemostpopularproblemsincombinatorialoptimization,anditsstudyhasgivenrisetoseveralexactandheuristicsolutiontechniquesofgeneralapplicability.ItgeneralizestheTravelingSalesmanProblem(TSP)andisthereforeNP-hard.Arecentsur-veyoftheVRPcanbefoundinthefirstsixchaptersofthebookeditedbyTothandVigo(2002a).TheaimofthissectionistoprovideacomprehensiveoverviewoftheavailableexactandheuristicalgorithmsfortheVRP,mostofwhichhavealsobeenadaptedtosolveothervariants,aswillbeshownintheremainingsections.

TheVRPisoftendefinedundercapacityandroutelengthrestrictions.WhenonlycapacityconstraintsarepresenttheproblemisdenotedasCVRP.Mostexactalgorithmshavebeendevelopedwithcapacityconstraintsinmindbutseveralapplymutatismutandistodistanceconstrainedproblems.Incon-trast,mostheuristicsexplicitlyconsiderbothtypesofconstraint.2.1Formulations

ThesymmetricVRPisdefinedonacompleteundirectedgraphG=(V󰀓E).ThesetV={0󰀓󰀒󰀒󰀒󰀓n}isavertexset.Eachvertexi∈V\\{0}representsacus-tomerhavinganonnegativedemandqi,whilevertex0correspondstoadepot.Toeachedgee∈E={(i󰀓j):i󰀓j∈V󰀓iCh.6.VehicleRouting369

i󰀓j∈V󰀓i=j}isanarcset.Inthiscaseacircuit(directedcycle)isassociatedwithavehicleroute.MostresultsofSections2.1and2.2applytothesymmetricCVRP.

AnintegerlinearprogrammingformulationoftheCVRPfollows,whereforeachedgee∈Etheintegervariablexeindicatesthenumberoftimesedgeeistraversedinthesolution.Letr(S)denotetheminimumnumberofvehiclesneededtoservethecustomersofasubsetSofcustomers.Thevalueofr(S)maybedeterminedbysolvinganassociatedBinPackingProblem(BPP)withitemsetSandbinsofcapacityQ.Finally,forS⊂V,letδ(S)={(i󰀓j):i∈S󰀓j∈/Sori∈/S󰀓j∈S}.IfS={i},thenwesimplywriteδ(i)insteadofδ({i}).TheCVRPformulationproposedbyLaporteetal.(1985)isthen:

(CVRP1)

minimize

󰀂

e∈E

cexe(1)

subjectto

󰀂

xe=2󰀓

e∈δ(i)

i∈V\\{0}󰀓

(2)(3)

󰀂

xe=2m󰀓xe󰀂2r(S)󰀓

S⊆V\\{0}󰀓S=∅󰀓

e∈δ(0)

󰀂

(4)(5)(6)

e∈δ(S)

xe∈{0󰀓1}󰀓xe∈{0󰀓1󰀓2}󰀓

e∈/δ(0)󰀓e∈δ(0)󰀒

Thedegreeconstraints(2)statethateachcustomerisvisitedexactlyonce,

whereasthedepotdegreeconstraint(3)meansthatmroutesarecreated.Capacityconstraints(4)imposeboththeconnectivityofthesolutionandthevehiclecapacityrequirementsbyforcingasufficientnumberofedgestoentereachsubsetofvertices.WenotethatsincetheBPPisNP-hardinthestrongsense,󰀁r(S)maybeapproximatedfrombelowbyanyBPPlowerbound,suchas󰀌i∈Sqi/Q󰀍.Finally,constraints(5)and(6)imposethateachedgebetweentwocustomersistraversedatmostonceandeachedgeincidenttothedepotistraversedatmosttwice.Inthislattercase,thevehicleperformsaroutevisitingasinglecustomer.

Awidelyusedalternativeformulationisbasedonthesetpartitioningorsetcoveringmodels.TheformulationwasoriginallyproposedbyBalinskiandQuandt(1964)andcontainsapotentiallyexponentialnumberofbinaryvari-ables.LetR={R1󰀓󰀒󰀒󰀒󰀓Rs}denotethecollectionofallfeasibleroutes,withs=|R|.EachrouteRjhasanassociatedcostγj,andaijisabinarycoefficientequalto1ifandonlyifvertexiisvisited(i.e.,covered)byrouteRj.Thebinaryvariablexj,j=1󰀓󰀒󰀒󰀒󰀓s,isequalto1ifandonlyifrouteRjisselectedinthe

370J.-F.Cordeauetal.

solution.Themodelis:

(CVRP2)minimizesubjectto

s󰀂

aijxj=1󰀓

j=1s󰀂j=1

s󰀂j=1

γjxj

(7)

i∈V\\{0}󰀓

(8)

xj=m󰀓

j=1󰀓󰀒󰀒󰀒󰀓s󰀒

(9)(10)

xj∈{0󰀓1}󰀓

Constraints(8)imposethateachcustomeriiscoveredbyexactlyoneroute,

and(9)requiresthatmroutesbeselected.Becauseroutefeasibilityisimplic-itlyconsideredinthedefinitionofR,thisisaverygeneralmodelwhichmayeasilytakeadditionalconstraintsintoaccount.Moreover,whenthecostmatrixsatisfiesthetriangleinequality(i.e.,cij󰀁cik+ckjforalli󰀓j󰀓k∈V),thesetpartitioningmodelCVRP2maybetransformedintoanequivalentsetcover-ingmodelCVRP2󰀁byreplacingtheequalitysignwith“󰀂”in(8).AnyfeasiblesolutiontoCVRP2isclearlyfeasibleforCVRP2󰀁,andanyfeasiblesolutiontoCVRP2󰀁maybetransformedintoafeasibleCVRP2solutionofsmallerorequalcost.Indeed,iftheCVRP2󰀁solutionisinfeasibleforCVRP2,thenoneormorecustomersarevisitedmorethanonce.Thesecustomersmaythere-foreberemovedfromtheirroutebyapplyingshortcutswhichwillnotincreasethesolutioncostbecauseofthetriangleinequality.Themainadvantageofus-ingCVRP2󰀁isthatonlyinclusion-maximalfeasibleroutes,amongthosewiththesamecost,needbeconsideredinthedefinitionofR.Thissignificantlyreducesthenumberofvariables.Inaddition,whenusingCVRP2󰀁thedualso-lutionspaceisconsiderablyreducedsincedualvariablesarerestrictedtobenonnegative.OneofthemaindrawbacksofmodelsCVRP2andCVRP2󰀁liesintheirverylargenumberofvariables,whichinlooselyconstrainedmediumsizeinstancesmayeasilyrunintothebillions.Thus,onehastoresorttoacolumngenerationalgorithmtosolvetheseproblems.Thelinearprogram-mingrelaxationofthesemodelstendstobeverytight,asshownbyBramelandSimchi-Levi(1997).Furtherdetailsontheseformulationsandtheirextensions,aswellasadditionalformulationsforthesymmetricandasymmetriccases,canbefoundinLaporteandNobert(1987)andinTothandVigo(2002b,2002d).2.2ExactalgorithmsfortheCVRP

WenowreviewthemainexactapproachespresentedinthelasttwodecadesforthesolutionoftheCVRP.Forathoroughreviewofpreviousexactmeth-ods,seeLaporteandNobert(1987).Wefirstdescribethealgorithmsbasedon

Ch.6.VehicleRouting371

branch-and-bound,includingthosethatmakeuseofthesetpartitioningfor-mulationandcolumngenerationschemes,andwethenexaminethealgorithmsbasedonbranch-and-cut.Inpractice,theCVRPturnsouttobesignificantlyhardertosolvethantheTSP.ThebestCVRPalgorithmscanrarelytacklein-stancesinvolvingmorethan100vertices,whileTSPinstanceswithhundredsandeventhousandsofverticesarenowroutinelysolvedtooptimality.2.2.1Branch-and-boundandsetpartitioningbasedalgorithms

Severalbranch-and-boundalgorithmsareavailableforthesolutionoftheCVRP.Untilthelate1980s,themosteffectiveexactmethodsweremainlybranch-and-boundalgorithmsbasedonelementarycombinatorialrelaxations.Recently,moresophisticatedboundshavebeenproposed,namelythosebasedonLagrangianrelaxationsorontheadditiveboundingprocedure,whichhavesubstantiallyincreasedthesizeoftheproblemsthatcanbesolvedtooptimal-ity.Wenowdescribesomebranch-and-boundalgorithmswithanemphasisonlowerboundcomputationswhichconstitutethemostcriticalcomponentofmethodsofthistype.Moredetailsonthestructureofbranch-and-boundal-gorithmstrategiesanddominancerulesmaybefoundinTothandVigo(1998,2002c,2002d).Wealsoreviewinthissectionexactsetpartitioningbasedalgo-rithmsfortheCVRP.

Manydifferentelementarycombinatorialrelaxationswereusedinearlybranch-and-boundalgorithms,includingthosebasedontheAssignmentProb-lem(AP),onthedegree-constrainedshortestspanningtree,andonstate-spacerelaxation.Hereweoutlinethetwofamiliesofrelaxationsusedasabasisforthemorerecentbranch-and-boundalgorithmsforthesymmetricandasym-metricCVRP.Afirstrelaxationisobtainedfromtheintegerprogrammingformulationsoftheseproblemsbydroppingtheconnectivityandcapacitycon-straints.Inthesymmetriccasetheresultingproblemisab-MatchingProblem(b-MP),i.e.,theproblemofdeterminingaminimumcostsetofcyclescover-ingallverticesandsuchthatthedegreeofeachvertexiisequaltobi,wherebi=2forallthecustomervertices,andb0=2mforthedepotvertex.Itiseasytoseethatbyaddingm−1copiesofthedepottoGtherelaxationbe-comesa2-MP.Intheasymmetriccasetherelaxedproblemisthewell-knowntransportationproblemwhichmaybetransformedintoanAPbyintroducingcopiesofthedepot.Alsointhiscase,theAPmaybeseenastheproblemofdeterminingasetofcircuitscoveringallverticesandsuchthateachvertexhasoneenteringandoneleavingarc.ThesolutionoftheserelaxedproblemsmaybeinfeasiblefortheCVRPsincethedemandassociatedwithacycleorcircuitmayexceedthevehiclecapacity,andsomeofthesemaybedisconnectedfromthedepot.Therelaxedproblemsmaythenbesolvedinpolynomialtime(see,e.g.,MillerandPekny,1995,fortheb-MPandDell’AmicoandToth,2000fortheAP).However,thequalityofthelowerboundsobtainedwiththeserelax-ationsisgenerallyverypoorandnotsufficienttosolveinstanceswithmorethan15or20customers.TothandVigo(2002c)reportaveragegapsinexcessof20%withrespecttotheoptimalsolutionvalueonbenchmarkCVRPin-

372J.-F.Cordeauetal.

stances.ThesituationisslightlybetterfortheAPrelaxationoftheasymmetricCVRPthatyieldsaveragegapsofabout10%orless.Laporteetal.(1986)haveproposedabranch-and-boundalgorithmforasymmetricCVRP,basedontheAPrelaxationandcapableofsolvingrandomlygeneratedproblemsinvolvingtensofcustomersandbetweentwoandfourvehicles.

Thesecondfamilyofelementaryrelaxationsusedinrecentbranch-and-boundalgorithmsisbasedondegree-constrainedspanningtrees.Thesere-laxationsextendthewell-known1-treerelaxationproposedbyHeldandKarp(1971)fortheTSP.Theearliestbranch-and-boundalgorithmbasedonthisrelaxation,proposedbyChristofidesetal.(1981a),couldonlysolverelativelysmallinstances.Morerecently,Fisher(1994)haspresentedanothertreebasedrelaxationrequiringthedeterminationofaso-calledm-tree,definedasamini-mumcostsetofn+medgesspanningthegraph.TheapproachusedbyFisherisbasedonCVRP1withtheadditionalassumptionthatsingle-customerroutesarenotallowed.FishermodeledtheCVRPastheproblemofdetermininganm-treewithdegreeequalto2matthedepotvertex,withadditionalconstraintsonvehiclecapacityandadegreeof2foreachcustomervertex.Thedetermi-nationofanm-treewithdegree2matthedepotrequiresO(n3)time.Thedegree-constrainedm-treerelaxationiseasilyobtainedfromCVRP1byre-movingthedegreeconstraints(2)forcustomerverticesandweakeningthecapacityconstraints(4)intoconnectivityconstraints,i.e.,byreplacingtheirright-handsidewith1.Them-treesolutionisnotalwaysfeasiblefortheCVRPsincesomeverticesmayhaveadegreedifferentfrom2andthedemandasso-ciatedwiththesubtreesincidenttothedepotmayexceedthevehiclecapacity.FortheasymmetricCVRP,similarrelaxationsmaybederivedfromdirectedtrees,alsocalledarborescences,spanningthegraphandhavinganoutdegreeequaltomatthedepotvertex.Toobtainthefinalboundaminimumcostsetofmvertex-disjointarcsenteringthedepotareaddedtotheconstrainedarbores-cence.Inthiscase,therelaxedsubproblemmaybesolvedinpolynomialtime,butagainthequalityoftheresultinglowerboundisverypoor.TothandVigo(2002c)reportthatonbenchmarkasymmetricinstances,theaveragegapoftheserelaxationswithrespecttotheoptimalsolutionvalueislargerthan25%.DifferentimprovedboundingtechniqueswerelaterdevelopedtonarrowthegapbetweenthelowerboundandtheoptimalsolutionvalueoftheCVRP.TheseincludetwoboundingproceduresbasedonLagrangianrelax-ationproposedbyFisher(1994)andMiller(1995).ThesearestrengtheningsofthebasicCVRPrelaxationsobtainedbydualizingsomeoftherelaxedconstraintsinaLagrangianfashion.Inparticular,theybothincludeintheobjectivefunctionasuitablesubsetofthecapacityconstraints(4),whereastheFisherrelaxationalsoincorporatesdegreeconstraints(2)whichwerere-laxedinthem-treerelaxation.Asinrelatedproblems,goodvaluesfortheLagrangianmultipliersassociatedwiththerelaxedconstraintsaredeterminedbyusingasubgradientoptimizationprocedure(see,e.g.,HeldandKarp,1971;Heldetal.,1974).Themaindifficultyassociatedwiththeserelaxationsliesintheexponentialcardinalityofthesetofrelaxedconstraintswhichdoesnot

Ch.6.VehicleRouting373

allowfortheircompleteinclusionintheobjectivefunction.TheseauthorsincludealimitedfamilyFofcapacityconstraintsanditerativelygeneratetheconstraintsviolatedbythecurrentsolutionoftheLagrangianproblem.Theprocessterminateswhennoviolatedconstraintisdetected(hencetheLagrangiansolutionisfeasible)orapresetnumberofsubgradientitera-tionshavebeenexecuted.RedundantconstraintsareperiodicallyremovedfromF.Therelax-and-cutalgorithmofMartinhonetal.(2000)generalizestheseLagrangian-basedapproachesbyalsoconsideringcombandmultistarinequalities,andmoderatelyimprovesthequalityoftheLagrangianbound.SomeexactalgorithmsfortheCVRParebasedonthesetpartitioningformulationCVRP2.ThefirstoftheseisduetoAgarwaletal.(1989)whocon-sideredarelaxationofmodelCVRP2notincludingconstraints(9)andsolvedtheresultingmodelthroughcolumngeneration.Agarwal,Mathur,andSalkinusedtheiralgorithmtosolvesevenEuclideanCVRPinstanceswithupto25customers.Hadjiconstantinouetal.(1995)proposedabranch-and-boundal-gorithminwhichthelowerboundwasobtainedbyconsideringthedualofthelinearrelaxationofmodelCVRP2,followingtheapproachintroducedbyMingozzietal.(1994).Bylinearprogrammingduality,anyfeasiblesolu-tiontothisdualproblemyieldsavalidlowerbound.Hadjiconstantinouetal.(1995)determinedtheheuristicdualsolutionsbycombiningtworelaxationsoftheoriginalproblem:theq-pathrelaxationofChristofidesetal.(1981a)andthem-shortestpathrelaxationofChristofidesandMingozzi(1989).Theal-gorithmwasabletosolverandomlygeneratedEuclideaninstanceswithupto30verticesandbenchmarkinstanceswithupto50vertices.Furtherdetailsonsetpartitioning-basedalgorithmsfortheCVRPareprovidedinBramelandSimchi-Levi(2002).

Fischettietal.(1994)haveimprovedtheAPrelaxationoftheasymmet-ricCVRPbycombiningintoanadditiveboundingproceduretwonewlowerboundsbasedondisjunctionsoninfeasiblearcsubsetsandonminimumcostflows.TheadditiveapproachwasproposedbyFischettiandToth(1989)andal-lowsforthecombinationofdifferentlowerboundingprocedures,eachexploit-ingadifferentsubstructureoftheproblemunderconsideration.Theresultingbranch-and-boundapproachwasabletosolverandomlygeneratedinstancescontainingupto300verticesandfourvehicles.Otherboundsfortheasym-metricCVRPmaybederivedbygeneralizingthemethodsproposedforthesymmetriccase.Forexample,Fisher(1994)proposedawayofextendingtotheasymmetricCVRPtheLagrangianboundbasedonm-trees.InthisextensiontheLagrangianproblemcallsforthedeterminationofanundirectedm-treeontheundirectedgraphobtainedbyreplacingeachpairofarcs(i󰀓j)and(j󰀓i)

󰀁=min{c󰀓c}.Nocomputationaltestingforwithasingleedge(i󰀓j)ofcostcijijji

thisboundwaspresentedbyFisher(1994).Potentiallybetterboundsmaybeobtainedbyexplicitlyconsideringtheasymmetryoftheproblem,i.e.,byusingm-arborescencesratherthanm-treesandbystrengtheningtheboundinaLa-grangianfashionasproposedbyTothandVigo(1995,1997)forthecapacitatedshortestspanningarborescenceproblemandfortheVRPwithbackhauls.

374J.-F.Cordeauetal.

2.2.2Branch-and-cutalgorithms

Branch-and-cutalgorithmscurrentlyconstitutethebestavailableexactap-proachforthesolutionoftheCVRP.Researchinthisareahasbeenstronglymotivatedbytheemergenceandthesuccessofpolyhedralcombinatoricsasaframeworkforthesolutionofhardcombinatorialproblems,particularlytheTSP.However,inarecentsurveyonbranch-and-cutapproachesfortheCVRP,NaddefandRinaldi(2002)state:“...theamountofresearcheffortspenttosolveCVRPbythismethodisnotcomparablewithwhathasbeendedicatedtotheTSP[...theresearchinthisfield]isstillquitelimitedandmostofitisnotpublishedyet”.Inthefollowingwesummarizethemainavailablebranch-and-cutapproachesfortheCVRP.ThereaderisreferredtoNaddefandRinaldi(2002)foramoredetailedpresentation.

Theuseofbranch-and-cutfortheCVRPisrootedintheexactalgorithmofLaporteetal.(1985).ThisalgorithmusestheLinearProgramming(LP)re-laxationofmodelCVRP1withoutcapacityconstraints(4)asabasisfortheso-lutionoftheVRPwithcapacityandmaximumdistancerestrictions.Thisinitialrelaxationisiterativelystrengthenedbyaddingviolatedcapacityconstraintswhichareheuristicallyseparatedbyconsideringtheconnectedcomponentsin-ducedbythesetofnonzerovariablesinthecurrentLPsolution.Gomorycutsarealsointroducedattherootnodeofthebranch-and-cuttree.ThealgorithmwascapableofsolvingrandomlygeneratedlooselyconstrainedEuclideanandnon-Euclideaninstanceswithtwoorthreevehiclesandupto60customers.ThefirstpolyhedralstudyoftheCVRPwaspresentedbyCornuéjolsandHarche(1993).Thepresenceofequalities(2)and(3)makestheCVRPnonfully-dimensional.Therefore,asintheTSP,CornuéjolsandHarchefirstconsideredthefull-dimensionalpolyhedron,containingtheCVRPpolyhedronasaface,associatedwiththeso-calledGraphicalVRP(GVRP)wherecus-tomersmaybevisitedmorethanonce.ThebasicpropertiesoftheGVRPpolyhedronwerealsoinvestigated.Conditionsunderwhichthenonnegativity,degreeandcapacityconstraintsdefinefacetsoftheGVRPandCVRPpoly-hedrawerealsodetermined.CornuéjolsandHarchehaveextendedtotheGVRPandtheCVRPseveralotherfamiliesofvalidinequalitiesproposedfortheTSPandthegraphicalTSP.Inparticular,comb,path,wheelbarrow,andbicycleinequalitieswereextendedtothecapacitatedcaseandagain,suffi-cientconditionsunderwhichtheseinequalitiesdefinefacetsoftheGVRPandCVRPpolyhedrawerederived.TheseinequalitieswereusedbyCornuéjolsandHarcheascuttingplanestosolvetwoinstancesofCVRPwith18and50customers,withinabranch-and-cutalgorithm.Thedetectionofviolatedin-equalitieswasperformedmanually,startingfromthecurrentoptimalLPsolu-tion.

Augeratetal.(1995)havedevelopedthefirstcompletebranch-and-cutap-proachfortheCVRP.TheydescribedseveralheuristicseparationproceduresfortheclassesofvalidinequalitiesproposedbyCornuéjolsandHarche,aswellasfournewclassesofvalidinequalities.Separationprocedureswerefurtherin-vestigatedbyAugeratetal.(1999).Theresultingapproachwasabletosolve

Ch.6.VehicleRouting375

severalCVRPinstancescontainingupto134customers.Ralphsetal.(2003)havepresentedabranch-and-cutalgorithmfortheCVRPinwhichanexactseparationofvalidm-TSPinequalitiesisusedinadditiontoheuristicsepara-tionofcapacityinequalities.TheresultingalgorithmwasimplementedwithintheSYMPHONYparallelbranch-and-cut-and-priceframeworkandwasabletosolveseveralinstancesinvolvingfewerthan100vertices.Lysgaardetal.(2004)havedevelopednewseparationproceduresformostofthefamiliesofvalidinequalitiesproposedsofar(seealsoLetchfordetal.,2002).Theirover-allbranch-and-cutapproach,whichisfurtherenhancedbytheuseofGomorycuts,wasabletosolvewithinmoderatecomputingtimespreviouslysolvedin-stancesandthreenewmediumsizeones.

Baldaccietal.(2004)haveputforwardabranch-and-cutalgorithmbasedonatwo-commoditynetworkflowformulationoftheCVRPandrequiringapolynomialnumberofintegervariables.Itseemstoprovideaninterestingalternativetootherclassicalformulations(seealsoGouveia,1995,forasingle-commodityformulation).TheoverallalgorithmstrengthenstheLPrelaxationbyaddingviolatedcapacityinequalitiesandimplementsvariousvariablere-ductionandbranchingrules.Theresultsobtainedwiththisapproacharecom-parablewiththoseoftheotherbranch-and-cutalgorithmsjustdescribed.

Finally,Fukasawaetal.(2006)haveproposedasuccessfulbranch-and-cut-and-pricealgorithmcombiningbranch-and-cutwiththeq-routesrelaxationofChristofidesetal.(1981a),usedhereinacolumngenerationfashion.Thismethodproducestighterboundsthanotherbranch-and-cutalgorithmsandiscapableofsolvingseveralpreviouslyunsolvedinstanceswithupto75customers.Baldaccietal.(2006)haveusedtheirsetpartitioningalgorithm,previouslydevelopedforarollon–rolloffVRP,tosolvedifficultCVRPin-stances.TheirapproachyieldsboundswhosequalityiscomparabletothoseofFukasawaetal.(2006),butseemsmuchquicker.

Otherbranch-and-cutalgorithmsaredescribedinAchuthanetal.(1996,2003)andBlasumandHochstättler(2000).Wealsomentionthatthepoly-hedralstructureofthespecialcaseofCVRPwhereallthecustomershaveaunitdemandwasstudiedbyCamposetal.(1991)andbyAraqueetal.(1990).Branch-and-cutalgorithmsforthisproblemarepresentedbyAraqueetal.(1994)andbyGhianietal.(2006).2.3HeuristicsfortheVRP

AnimpressivenumberofheuristicshavebeenproposedfortheVRP.Ini-tiallytheseweremainlystandardrouteconstructionalgorithms,whereasmorerecentlypowerfulmetaheuristicapproacheshavebeendeveloped.Inthefol-lowingweseparatelyreviewthesetwofamiliesofalgorithms.Almostallofthesemethodsweredeveloped,describedandtestedforthesymmetricVRP.Inaddition,sincefindingafeasiblesolutionwithexactlymvehiclesisitselfanNP-completeproblem,almostallmethodsassumeanunlimitednumber

376J.-F.Cordeauetal.

ofavailablevehicles.However,itshouldbeobservedthatmanyofthepro-posedmethodsmaybequiteeasilyadaptedtotakeintoaccountadditionalpracticalconstraints,althoughthesemayaffecttheiroverallperformance(see,e.g.,Vigo,1996,foranextensionofsomeclassicalheuristicstotheasymmetriccase).

2.3.1Classicalheuristics

UsingtheclassificationproposedbyLaporteandSemet(2002),wedescribeclassicalVRPheuristicsundertheseheadings:routeconstructionmethods,two-phasemethods,androuteimprovementmethods.

Routeconstructionheuristics.RouteconstructionmethodswereamongthefirstheuristicsfortheCVRPandstillformthecoreofmanysoftwareimple-mentationsforvariousroutingapplications.Thesealgorithmstypicallystartfromanemptysolutionanditerativelybuildroutesbyinsertingoneormorecustomersateachiteration,untilallcustomersarerouted.Constructionalgo-rithmsarefurthersubdividedintosequentialandparallel,dependingonthenumberofeligibleroutesfortheinsertionofacustomer.Sequentialmethodsexpandonlyonerouteatatime,whereasparallelmethodsconsidermorethanoneroutesimultaneously.Routeconstructionalgorithmsarefullyspecifiedbytheirthreemainingredients,namelyaninitializationcriterion,aselectioncriterionspecifyingwhichcustomersarechosenforinsertionatthecurrentiteration,andaninsertioncriteriontodecidewheretolocatethechosencus-tomersintothecurrentroutes.

ThefirstandmostfamousheuristicofthisgroupwasproposedbyClarkeandWright(1964)andisbasedontheconceptofsaving,anestimateofthecostreductionobtainedbyservingtwocustomerssequentiallyinthesameroute,ratherthanintwoseparateones.Ifiisthelastcustomerofarouteandjisthefirstcustomerofanotherroute,theassociatedsavingisdefinedassij=ci0+c0j−cij.Ifsijispositive,thenservingiandjconsecutivelyinarouteisprofitable.TheClarkeandWrightalgorithmconsidersallcustomerpairsandsortsthesavingsinnonincreasingorder.Startingwithasolutioninwhicheachcustomerappearsseparatelyinaroute,thecustomerpairlistisex-aminedandtworoutesaremergedwheneverthisisfeasible.Generally,aroutemergeisacceptedonlyiftheassociatedsavingisnonnegativebut,ifthenum-berofvehiclesistobeminimized,thennegativesavingmergesmayalsobeconsidered.TheClarkeandWrightalgorithmisinherentlyparallelsincemorethanonerouteisactiveatanytime.However,itmayeasilybeimplementedinasequentialfashion.Theresultingalgorithmisquitefastbutmayhaveapoorperformance(see,e.g.,LaporteandSemet,2002).Goldenetal.(1977),Paessens(1988),andNelsonetal.(1985)haveproposedvariousenhancementstrategiesofthesavingsapproachaimedatimprovingeitheritseffectivenessoritscomputationalefficiencybymeansofbetterdatastructures.OtherattemptstoimprovetheeffectivenessofthesavingsmethodweremadebyDesrochersandVerhoog(1989),AltinkemerandGavish(1991),andbyWarkandHolt

Ch.6.VehicleRouting377

(1994)whoproposedtoimplementroutemergesbyusingamatchingalgo-rithm,togetherwithamoresophisticatedestimateofactualmergesavings.Theresultsobtainedwiththesealgorithmsareingeneralbetterthanthoseofprevioussavingsmethods,butmatching-basedalgorithmsrequiremuchlargercomputingtimes.

Anotherclassicalrouteconstructionheuristicisthesequentialinsertional-gorithmofMoleandJameson(1976).Thealgorithmusesasselectionandinsertioncriteriontheevaluationoftheextradistanceresultingfromthein-sertionofanunroutedcustomerkbetweentwoconsecutivecustomersiandjofthecurrentroute,namelyα(i󰀓k󰀓j)=cik+ckj−λcij,whereλisauser-controlledparameter.Variationsofthiscriteriontakingintoaccountotherfactors,suchasthedistanceofthecustomerfromthedepot,werealsocon-sidered.Aftereachinsertion,thecurrentrouteispossiblyimprovedbyusinga3-optprocedure.Amoregeneralandeffectivetwo-stepinsertionheuristicwasproposedbyChristofidesetal.(1979).Inthefirststep,asequentialinser-tionalgorithmisusedtodetermineasetoffeasibleroutes.Thesecondstepisaparallelinsertionapproach.Foreachroutedeterminedinthefirststep,arepresentativecustomerisselectedandasetofsingle-customerroutesisinitializedwiththesecustomers.Theremainingunroutedcustomersaretheninsertedbyusingaregretcriterion,wherethedifferencebetweenthebestandthesecond-bestinsertioncostistakenintoaccount,andpartialroutesareim-provedbymeansofa3-optprocedure.TheresultingalgorithmissuperiortothatofMoleandJamesonandrepresentsagoodcompromisebetweeneffec-tivenessandefficiency.

Two-phaseheuristics.Two-phasemethodsarebasedonthedecompositionoftheVRPsolutionprocessintothetwoseparatesubproblems:

(1)clustering:determineapartitionofthecustomersintosubsets,eachcor-respondingtoaroute,and

(2)routing:determinethesequenceofcustomersoneachroute.

Inacluster-first-route-secondmethod,customersarefirstgroupedintoclus-tersandtheroutesarethendeterminedbysuitablysequencingthecustomerswithineachcluster.Differenttechniqueshavebeenproposedfortheclusteringphase,whiletheroutingphaseamountstosolvingaTSP.

Thesweepalgorithm,duetoWren(1971),WrenandHolliday(1972),andGillettandMiller(1974),isoftenreferredtoasthefirstexampleofcluster-first-route-secondapproach.ThealgorithmappliestoplanarVRPinstances.Thealgorithmstartswithanarbitrarycustomerandthensequentiallyassignstheremainingcustomerstothecurrentvehiclebyconsideringtheminorderofincreasingpolaranglewithrespecttothedepotandtheinitialcustomer.Assoonasthecurrentcustomercannotbefeasiblyassignedtothecurrentvehicle,anewrouteisinitializedwithit.Onceallcustomersareassignedtovehicles,eachrouteisseparatelydefinedbysolvingaTSP.Anotherearlytwo-phasemethodisthetruncatedbranch-and-boundmethodofChristofidesetal.

378J.-F.Cordeauetal.

(1979)inwhichthesetofroutesisdeterminedthroughanadaptationofanex-actbranch-and-boundalgorithmthatusesabranching-on-routesstrategy.Thedecisiontreecontainsasmanylevelsasthenumberofavailablevehicles,andateachlevelofthedecisiontreeagivennodecorrespondstoapartialsolu-tionmadeupofsomecompleteroutes.Thedescendantnodescorrespondtoallpossibleroutesincludingasubsetoftheunroutedcustomers.Therunningtimeofthealgorithmiscontrolledbylimitingtoonethenumberofroutesgeneratedateachlevel.

TheFisherandJaikumar(1981)algorithmsolvestheclusteringstepbymeansofanappropriatelydefinedGeneralizedAssignmentProblem(GAP)whichcallsforthedeterminationofaminimumcostassignmentofitemstoagivensetofbinsofcapacityQ,andwheretheitemsarecharacterizedbyaweightandanassignmentcostforeachbin.Eachvehicleisassignedarepre-sentativecustomer,calledaseed,andtheassignmentcostofacustomertoavehicleisequaltoitsdistancetotheseed.TheGAPisthensolved,eitheropti-mallyorheuristically,andthefinalroutesaredeterminedbysolvingaTSPoneachcluster.

Anothertwo-phasemethodworkingwithafixednumbermofvehicleswasdescribedbyBramelandSimchi-Levi(1995).Thisalgorithmdeterminesrouteseedsbysolvingacapacitatedlocationproblem,wheremcustomersarese-lectedbyminimizingthetotaldistancebetweeneachcustomeranditsclosestseed,andbyimposingthatthetotaldemandassociatedwitheachseedbeatmostQ.Onceseedshavebeendeterminedandthesingle-customerroutesareinitialized,theremainingcustomersareinsertedinthecurrentroutesbyminimizinginsertioncosts.Variouswaysofapproximatingtheinsertioncostareproposedandanalyzed.Itisworthnotingthatallthreecluster-first-route-secondapproachesjustdescribedallowforadirectcontrolofthenumberofroutesinthefinalsolution,whereasthesweepalgorithmdoesnot.Theperfor-manceofthesealgorithmsisgenerallycomparabletothatofrouteconstructionalgorithmsintermsofeffectiveness.ThelocationbasedapproachofBramelandSimchi-Leviproducesbettersolutionsbutrequiresmuchlargercomputingtimes.

Adifferentfamilyoftwo-phasemethodsistheclassofso-calledpetalalgo-rithms.Thesegeneratealargesetoffeasibleroutes,calledpetals,andselectthefinalsubsetbysolvingasetpartitioningmodel.FosterandRyan(1976)andRyanetal.(1993)haveproposedheuristicrulesfordeterminingthesetofroutestobeselected,whileRenaudetal.(1996b)havedescribedanextensionthatconsidersmoreinvolvedconfigurations,called2-petals,consistingoftwoembeddedorintersectingroutes.Theoverallperformanceofthesealgorithmsisgenerallysuperiortothatofthesweepalgorithm.

Finally,inroute-first-cluster-secondmethods,agiantTSPtouroverallcus-tomersisconstructedinafirstphaseandlatersubdividedintofeasibleroutes.ExamplesofsuchalgorithmsaregivenbyBeasley(1983),HaimovichandRinnooyKan(1985),andBertsimasandSimchi-Levi(1996),buttheperfor-manceofthisapproachisgenerallypoor.

Ch.6.VehicleRouting379

Routeimprovementheuristics.Localsearchalgorithmsareoftenusedtoim-proveinitialsolutionsgeneratedbyotherheuristics.Startingfromagivensolu-tion,alocalsearchmethodappliessimplemodifications,suchasarcexchangesorcustomermovements,toobtainneighborsolutionsofpossiblybettercost.Ifanimprovingsolutionisfound,itthenbecomesthecurrentsolutionandtheprocessiterates;otherwisealocalminimumhasbeenidentified.

Alargevarietyofneighborhoodsareavailable.Thesemaybesubdividedintointra-routeneighborhoods,iftheyoperateonasinglerouteatatime,orinter-routeneighborhoodsiftheyconsidermorethanoneroutesimultaneously.Themostcommonneighborhoodtypeistheλ-optheuristicofLin(1965)fortheTSP,whereλedgesareremovedfromthecurrentsolutionandreplacedbyλothers.Thecomputingtimerequiredtoexamineallneighborsofasolutionisproportionaltonλ.Thus,onlyλ=2or3areusedinpractice.Asanalterna-tive,onecanuserestrictedneighborhoodscharacterizedbysubsetsofmovesassociatedwithlargerλvalues,suchasOr-exchanges(Or,1976)orthe4-opt*neighborhoodofRenaudetal.(1996a)whichconsidersonlyasubsetofallpotential4-optexchanges.LaporteandSemet(2002)haveconductedacom-putationalcomparisonofsomebasicrouteimprovementprocedures.Morecomplexinter-routeneighborhoodsareanalyzedbyThompsonandPsaraftis(1993),VanBreedam(1994),andKindervaterandSavelsbergh(1997).2.3.2Metaheuristics

SeveralmetaheuristicshavebeenappliedtotheVRP.Withrespecttoclas-sicalheuristics,theyperformamorethoroughsearchofthesolutionspaceandarelesslikelytoendwithalocaloptimum.Thesecanbebroadlydividedintothreeclasses:

(1)localsearch,includingsimulatedannealing,deterministicannealing,

andtabusearch;

(2)populationsearch,includinggeneticsearchandadaptivememorypro-cedures;

(3)learningmechanisms,includingneuralnetworksandantcolonyopti-mization.Thebestheuristicsoftencombineideasborrowedfromdifferentmeta-heuristicprinciples.RecentsurveysofVRPmetaheuristicscanbefoundinGendreauetal.(2002),CordeauandLaporte(2004),andCordeauetal.(2005).

Localsearchalgorithmsexplorethesolutionspacebyiterativelymovingfromasolutionxtatiterationttoasolutionxt+1intheneighborhoodN(xt)ofxtuntilastoppingcriterionissatisfied.Iff(x)denotesthecostofsolutionx,thenf(xt+1)isnotnecessarilysmallerthanf(xt).Asaresult,mechanismsmustbeimplementedtoavoidcycling.Insimulatedannealing,asolutionxisdrawnrandomlyfromN(xt).Iff(x)󰀁f(xt),thenxt+1:=x.Otherwise,

󰀌

xwithprobabilitypt󰀓

xt+1:=

xtwithprobability1−pt󰀓

380J.-F.Cordeauetal.

whereptisadecreasingfunctionoftandoff(x)−f(xt).Thisprobabilityisoftenequalto

󰀉󰀈

f(x)−f(xt)

pt=exp−󰀓

θtwhereθtisthetemperatureatiterationt,usuallydefinedasanonincreasingfunctionoft.Deterministicannealing(Dueck,1990,1993)issimilar.Therearetwomainversionsofthisalgorithm:inathreshold-acceptingalgorithm,xt+1:=xiff(x)Populationsearchalgorithmsoperateonseveralgenerationsofsolutionpopulations.Ingeneticsearchitiscommontorepeatthefollowingoper-ationktimes:extracttwoparentsolutionsfromthepopulationstocreatetwooffspringusingacrossoveroperation,andapplyamutationoperationtoeachoffspring;thenremovethe2kworstelementsfromthepopula-tionandreplacethemwiththe2koffspring.Severalcrossoverrulesareavailableforsequencingproblems(Bean,1994;Potvin,1996;Drezner,2003;Prins,2004).Inadaptivememoryprocedures,anoffspringiscreatedbyex-tractingandrecombiningelementsofseveralparents.IntheinitialversionproposedbyRochatandTaillard(1995)fortheVRP,nonoverlappingroutesareextractedfromseveralparentstocreateapartialsolution.Thissolutionisthengraduallycompletedandoptimizedbytabusearch.

Neuralnetworksaremodelscomposedofrichlyinterconnectedunitsthroughweightedlinks,likeneuronsinthebrain.Theygraduallyconstructasolutionthroughafeedbackmechanismthatmodifiesthelinkweightstobettermatchanobservedoutputtoadescribedoutput.Inthefieldofvehicleroutingneuralnetworkmodelscalledtheelasticnetandtheself-organizingmaparedeformabletemplatesthatadjustthemselvestothecontouroftheverticestogenerateafeasibleVRPsolution.AnexampleisprovidedbyGhaziri(1993).Antcolonyalgorithms(seeDorigoetal.,1999)alsousealearningmechanism.Theyarederivedfromananalogywithantswhichlaysomepheromoneontheirtrailwhenforagingforfood.Withtimemorepheromoneisdepositedonthemorefrequentedtrails.WhenconstructingaVRPsolutionamovecan

Ch.6.VehicleRouting381

beassignedahigherprobabilityofbeingselectedifithaspreviouslyledtoabettersolutioninpreviousiterations.

InwhatfollowswesummarizethemosteffectivemetaheuristicsfortheCVRP.Initiallythebestmethodswerealmostexclusivelybasedontabusearchbutinrecentyearsseveralexcellentmethodsinspiredfromdifferentparadigmshavebeenproposed.

Localsearchheuristics.AlimitednumberofsimulatedannealingheuristicsfortheCVRPwereproposedintheearly1990s.Osman’simplementation(Osman,1993)isthemostinvolvedandalsothemostsuccessful.Itdefinesneighborhoodsbymeansofa2-interchangeschemeandappliesadifferentruleoftemperaturechanges.Insteadofusinganonincreasingfunction,asdomostauthorsinthefield,Osmandecreasesθtcontinuouslyaslongastheso-lutionimproves,butwheneverxt+1=xt,θtiseitherhalvedorreplacedbythetemperatureatwhichtheincumbentwasidentified.Thisalgorithmsucceededinproducinggoodsolutionsbutwasnotcompetitivewiththebesttabusearchimplementationsavailableatthesameperiod.

Alargenumberoftabusearchalgorithmshavebeenproducedoverthepastfifteenyears(asurveyisavailableinCordeauandLaporte,2004).Inthefirstknownimplementation,duetoWillard(1989),aCVRPsolutionisrepresentedasagianttourcontainingseveralcopiesofthedepotandinter-depotchainscorrespondingtofeasiblevehicleroutes,andneighborhoodsaredefinedbymeansof3-optexchanges.Themethodwassoontobesupersededbymorepowerfulalgorithms,includingthoseofOsman(1993),Taillard(1993),andGendreauetal.(1994).

Taillard’salgorithmremainstothisdayoneofthemostsuccessfultabusearchimplementationsfortheCVRP.Itisbasedontheuseofan1-inter-changemechanismtodefineneighborsolutions,combinedwithperiodicroutereoptimizationsbymeansofanexactTSPalgorithm(VolgenantandJonker,1983).Thealgorithmalsousesrandomtabudurations.Acontinuousdiversifi-cationmechanismthatpenalizesfrequentlyperformedmovesisimplementedinordertoprovideamorethoroughexplorationofthesearchspace.Finally,Taillard’salgorithmemploysadecompositionschemethatallowsfortheuseofparallelcomputing.Inplanarproblemsthecustomersetispartitionedintosectorsandthenconcentricrings,whileinrandominstancestheregionsaredefinedbymeansofshortestspanningarborescencesrootedatthedepot.Theregionboundariesareperiodicallyupdatedtoproduceadiversificationeffect.

TheTaburoutealgorithmofGendreauetal.(1994)movesateachitera-tionavertexfromitscurrentroutetoanotherroutecontainingoneofitsclosestneighbors.Insertionsareperformedsimultaneouslywithalocalre-optimizationoftheroute,basedontheGENIprocedure(Gendreauetal.,1992).Onlyasubsetofverticesareconsideredforreinsertionatanygiveniteration.Novertexcanreturntoitsformerrouteduringthenextθitera-tions,whereθisrandomlyselectedinaclosedinterval.Taburoutealsouses

382J.-F.Cordeauetal.

acontinuousdiversificationmechanism.Duringthecourseofthesearchin-feasiblesolutionsarepenalized.Thismechanismisimplementedbyreplacingthesolutionvaluef(x)associatedatsolutionxwithapenalizedobjectivef󰀁(x)=f(x)+αQ(x)+βL(x),whereQ(x)isthetotalcapacityviolationofsolutionxandL(x)isthetotalroutelengthviolation.Thetwoparametersαandβself-adjustduringthesearchtoproduceamixoffeasibleandinfeasiblesolutions:everyμiterations,α(resp.β)isdividedby2ifthepastμsolutionswerefeasiblewithrespecttocapacity(resp.routelength),ormultipliedby2iftheywereallinfeasiblewithrespecttocapacity(resp.routelength).OtherfeaturesofTaburouteincludetheuseofrandomtabudurations,periodicroutereoptimizationsbymeansoftheUSprocedureofGendreauetal.(1992),falsestartstoinitializethesearch,andafinalintensificationphasearoundthebestknownsolution.

TheRegoandRoucairol(1996)Tabuchainalgorithmisbasedontheuseofejectionchainsinvolving󰀪routestodefineneighborhoods.Thisprocessbumpsavertexfromonerouteofthechaintoanotherroute.Thelastbumpedver-texmayberelocatedinthepositionofthefirstbumpedvertexorelsewhere.Theprocessensuresthatnoarcoredgeisconsideredmorethanonceinthesolution.AsinTaburoute,intermediateinfeasiblesolutionsareallowed.Theauthorshavealsoimplementedasequentialandaparallelversionoftheirmethod.Anotherejectionscheme,calledFlower,waslaterdevelopedbyRego(1998).Itisbasedontheideaofexploitingtherepresentationofroutesasblossomsandofpathsasstems,andofperformingejectionmovesbymeansofedgedeletionsandcreations.ThismethodwasnotassuccessfulasTabuchain.AnothermethodemployingejectionchainswasdevelopedbyXuandKelly(1996).Itoscillatesbetweenejectionchainsandvertexswapsbetweentworoutes.Theejectionchainsareobtainedbysolvinganauxiliarynetworkflowproblem.Onthewholethismethodsucceededinobtainingsev-eralgoodCVRPsolutionsonbenchmarkinstancesbutitisratherinvolvedandtimeconsuming.

Morerecently,Ergunetal.(2003)havedevelopedaVeryLargeNeigh-borhoodSearch(VLNS)algorithmfortheVRP.Thisalgorithmoperatesonseveralroutessimultaneously,notunlikewhatisdoneincyclictransfers(ThompsonandPsaraftis,1993)orinejectionchains.Neighborhoodsarede-finedbyacombinationof2-optmoves,vertexswapsbetweenroutes,andvertexinsertionsindifferentroutes.Thebestchoiceofmovesandofroutesinvolvedinthemovesisdeterminedthroughthesolutionofanetworkflowproblemonanauxiliarygraph.OneadvantageofVLNSisthatitallowsabroadsearchbyactingonseveralroutesatonce.Itsmaindisadvantageliesintheeffortrequiredateachiterationtoperformmoves.

AveryusefulconceptputforwardbyTothandVigo(2003)isthatofGran-ularTabuSearch(GTS).Thisalgorithmaprioriremovesfromthegraphlongedgesthatareunlikelytobelongtoanoptimalsolution.Todeterminetheseedges,theproblemisfirstsolvedbymeansofafastheuristic,e.g.,theClarke

¯inthissolutionandWright(1964)algorithm,andtheaverageedgecostc

Ch.6.VehicleRouting383

isdetermined.Thenonlytwofamiliesofedgesareretained:thoseincident

¯,whereβisauser-tothedepot,andthosewhosecostdoesnotexceedβc

definedsparsificationparameter.Theauthorsshowthatonbenchmarkin-stances,choosingβin[1󰀒0󰀓2󰀒0]yieldstheeliminationofbetween80–90%ofalledges.GranulartabusearchwasimplementedinconjunctionwithsomeofthefeaturesofTaillard’salgorithm(Taillard,1993)andTaburoute(Gendreauetal.,1994),andneighborsolutionswereobtainedbyperformingintra-routeandinter-routeexchanges.

DeterministicannealingwasfirstappliedtotheVRPbyGoldenetal.(1998)andmorerecentlybyLietal.(2005).Thelatteralgorithmcombinestherecord-to-recordprincipleofDueck(1993)withGTS.Itworksonasparsifiedgraphcontainingonlyaproportionαofthe40shortestedgesincidenttoeachver-tex,whereαvariesthroughoutthealgorithm.ThealgorithmisappliedseveraltimesfromthreeinitialsolutionsgeneratedbytheClarkeandWright(1964)algorithm,withsavingssijdefinedasci0+c0j−λcij,andλ=0󰀒6󰀓1󰀒4󰀓and1󰀒6.Neighborsaredefinedbymeansofintra-andinter-route2-optmoves,andnonimprovingsolutionsareacceptedaslongastheircostdoesnotexceedthatoftheincumbentbymorethan1%.Wheneverthesolutionhasnotimprovedforanumberofiterations,aperturbationisappliedtothebestknownsolutiontorestartthesearch.Thisisachievedbytemporarilymovingsomeverticestodifferentpositions.

Populationsearchheuristics.TheAdaptiveMemoryProcedure(AMP)putforwardbyRochatandTaillard(1995)constitutesamajorcontributiontothefieldofmetaheuristics.InitiallydevelopedinthecontextoftheVRP,itisofgeneralapplicabilityandhasbeenused,forexample,tosolvepoliticaldistrict-ingproblems(Bozkayaetal.,2003).Anadaptivememoryisapoolofgoodsolutionswhichisupdatedbyreplacingitsworstelementswithbetterones.Inordertogenerateanewsolution,severalsolutionsareselectedfromthepoolandrecombined.InthecontextoftheVRP,vehicleroutesareextractedfromthesesolutionsandusedasthebasisofanewsolution.Theextractionprocessisappliedaslongasitispossibletoidentifyroutesthatdonotoverlapwithpre-viouslyselectedroutes.Whenthisisnolongerpossible,asearchprocess(e.g.,tabusearch)isinitiatedfromapartiallyconstructedsolutionmadeupoftheselectedroutesandsomeunroutedcustomers.Anysolutionconstructedinthisfashionreplacestheworstsolutionofthepoolifithasabettercost.TarantilisandKiranoudis(2002)haveproposedavarianttothisscheme.InafirstphaseasolutionisobtainedbymeansofthePaessens(1988)constructiveprocedure,whichisanapplicationoftheClarkeandWrightsavingsheuristicfollowedby2-optmoves,vertexswapsbetweenroutes,andvertexreinsertions.Inordertogeneratenewsolutionsfromtheadaptivememory,TarantilisandKiranoudisextractroutesegments,calledbones,asopposedtofullvehicleroutesasdidRochatandTaillard.

Prins(2004)hasdevelopedanalgorithmcombiningtwomainfeaturesofevolutionarysearch,namelycrossoversandmutations.Crossoversconsistof

384J.-F.Cordeauetal.

creatingoffspringsolutionsfromparents,whilemutationsareobtainedherebyapplyingalocalsearchalgorithmtoanoffspring.Thiscombinationofso-lutionrecombinationandlocalsearchissometimesreferredtoasamemeticalgorithm(MoscatoandCotta,2003).Inthisalgorithm,solutionsarerepre-sentedasagianttourwithouttripdelimiters.Tocreateanoffspringfromtwoparents,achain(i󰀓󰀒󰀒󰀒󰀓j)isfirstselectedfromthefirstparentandtheverticesofthesecondparentarescannedfrompositionj+1byskippingthoseofthechain(i󰀓󰀒󰀒󰀒󰀓j).Asecondoffspringisgeneratedinasimilarwaybyreversingtherolesofthetwoparents.Offspringareimprovedbyapplyingacombinationofvertexandedgereinsertions,vertexswaps,combinedvertexandedgeswaps.TwoothermemeticalgorithmshaverecentlybeenproposedbyBergerandBarkaoui(2004)andbyMesterandBräysy(2005).Thefirstworksontwopop-ulationswhosesizesarekeptconstantthroughthereplacementofparentsbynewlycreatedoffspring,andmigrationstakeplacebetweenthetwopopula-tions.Offspringareobtainedbycombiningroutesfromtwoparentsaslongasthiscanbedonewithoutoverlapping,andbyinsertingtheunroutedcustomersaccordingtoaproximitycriterion.AVLNSheuristic(Shaw,1998)combin-ingthreeinsertionmechanismsisthenappliedtotheoffspring,followedbyanimprovementschemeconsistingofremovingverticesfromthesolutionandreinsertingthembymeansoftheI1procedureofSolomon(1987).

TheActiveGuidedEvolutionStrategies(AGES)ofMesterandBräysywasinitiallydevelopedtosolvetheVRPwithtimewindowsandwaslaterappliedtotheclassicalVRP.Itcombineslocalsearch(Voudouris,1997)withanevolutionstrategy(Rechenberg,1973)toproduceaniterativetwo-stageprocedure.Theevolutionarystrategyusesadeterministicruletoselectaparentsolutionandcreateasingleoffspringfromasingleparent.Theoffspringreplacestheparentifitimprovesuponit.Offspringareimprovedbymeansofanelaboratesearchprocedurecombininggranulartabusearch,continuousdiversification,vertexswapsandmoves,2-opt*moves(PotvinandRousseau,1995),VLNS(Shaw,1998),andrestarts.

Learningmechanisms.AlimitednumberofheuristicsbasedonlearningmechanismshavebeenproposedfortheVRP.Noneoftheknownneuralnetworksbasedmethodsissatisfactory,andtheearlyantcolonybasedheuris-ticscouldnotcompetewiththebestavailableapproaches.Recently,how-ever,Reimannetal.(2004)haveproposedawell-performingheuristicscalledD-ants.Themethodrepeatedlyappliestwophasesuntilastoppingcriterionisreached.Inthefirstphase,afirstgenerationofgoodsolutionsisgener-atedthroughtheapplicationsofasavingsbasedheuristic(ClarkeandWright,1964)anda2-optimprovementprocedureisappliedtoeachsolution.Newgenerationsofsolutionsarethencreatedbybenefitingfromtheknowledgegainedinproducingpastgenerations.Thus,insteadofusingthestandardsav-αsβisnowemployed,ingssij=ci0+c0j−cij,anattractivenessvalueχij=τijij

αwhereτijcontainsinformationonhowgoodlinkingiandjturnedouttobe

inpreviousgenerations,andαandβareuser-controlledparameters.Vertices

Ch.6.VehicleRouting385

󰀁

iandjarelinkedwithprobabilitypij=χij/((h󰀓󰀪)∈Ωkχh󰀪),whereΩkisthesetofthefeasible(i󰀓j)pairsyieldingthekbestsavings.Inthesecondphasethebestsolutionidentifiedinthefirstphaseisdecomposedintosubproblemswhicharethenreoptimizedusingtheprocedureusedinthefirstphase.Computationalcomparisonofmetaheuristics.Cordeauetal.(2005)provideacomputationalcomparisonofrecentVRPheuristicsonthe14Christofidesetal.(1979)instances(50󰀁n󰀁199)andonthe20largerLietal.(2005)instances(200󰀁n󰀁480).Mostmetaheuristicsusedinthecomparisoncon-sistentlyyieldsolutionswhosevaluelieswithin1%ofthebestknownvalue.OntheChristofidesetal.(1979)instances,thebestsolutionsareobtainedbyTaillard(1993),RochatandTaillard(1995),andMesterandBräysy(2005).Ifthetwoinstancesetsaretakentogether,thebestperformers,intermsofac-curacyandcomputingtimeareprobablyMesterandBräysy(2005),TarantilisandKiranoudis(2002),andPrins(2004).Itshouldbenotedthatthesethreemethodsallcombinepopulationsearchandlocalsearch,thusallowingforabroadanddeepexplorationofthesolutionspace.

AsnotedbyCordeauetal.(2002b)heuristicsshouldnotbejudgedsolelyonspeedandaccuracy.Simplicityandflexibilityarealsoimportant.Inthisre-specttheLietal.(2005)record-to-recordalgorithmisratherinteresting:thisalgorithmpossessesasimplestructureandiscapableofgeneratingveryhighqualitysolutions.Asfarasflexibilityisconcerned,thegranularityprinciple(TothandVigo,2003)andtheadaptivememoryconcept(RochatandTaillard,1995)aregeneralandusefulideaswhichcaneasilybeappliedtootherprob-lems.

3Thevehicleroutingproblemwithtimewindows

TheVehicleRoutingProblemwithTimeWindows(VRPTW)isanimpor-tantgeneralizationoftheclassicalVRPinwhichserviceateverycustomerimuststartwithinagiventimewindow[ai󰀓bi].Avehicleisallowedtoarrivebe-foreaiandwaituntilthecustomerbecomesavailable,butarrivalsafterbiareprohibited.TheVRPTWhasnumerousapplicationsindistributionmanage-ment.Commonexamplesarebeverageandfooddelivery,newspaperdelivery,andcommercialandindustrialwastecollection(see,e.g.,Goldenetal.,2002).TheVRPTWisNP-hardsinceitgeneralizestheCVRPwhichisobtainedwhenai=0andbi=∞foreverycustomeri.Inthecaseofafixedfleetsize,evenfindingafeasiblesolutiontotheVRPTWisitselfanNP-completeproblem(Savelsbergh,1985).Asaresult,researchontheVRPTWhasconcen-tratedonheuristics.Nevertheless,whentheproblemissufficientlyconstrained(i.e.,whentimewindowsaresufficientlynarrow),realisticsizeinstancescanbesolvedoptimallythroughmathematicalprogrammingtechniques.ThissectionpresentsamathematicalformulationoftheVRPTWfollowedbyadescriptionofsomeofthemostimportantavailableexactandheuristicalgorithms.Itis

386J.-F.Cordeauetal.

worthpointingoutthatwhileexactmethodsusuallyminimizedistance,mostheuristicsconsiderahierarchicalobjectivewhichfirstminimizesthenumberofvehiclesusedandthendistance.3.1FormulationoftheVRPTW

TheVRPTWcanbedefinedonadirectedgraphG=(V󰀓A),where|V|=n+2,andthedepotisrepresentedbythetwovertices0andn+1.Feasiblevehicleroutesthencorrespondtopathsstartingatvertex0andend-ingatvertexn+1.ThesetofvehiclesisdenotedbyK,with|K|=m.Letsidenotetheservicetimeati(withs0=sn+1=0)andlettijbethetraveltimefromitoj.Inadditiontothetimewindow[ai󰀓bi]associatedwitheachvertexi∈N=V\\{0󰀓n+1},timewindows[a0󰀓b0]and[an+1󰀓bn+1]canalsobeasso-ciatedwiththedepotvertex.Ifnoparticularrestrictionsareimposedonvehicleavailability,onemaysimplyseta0=mini∈N{ai−t0i},b0=maxi∈N{bi−t0i},an+1=mini∈N{ai+si+ti󰀓n+1},andbn+1=maxi∈N{bi+si+ti󰀓n+1}.AsintheCVRP,letqidenotethedemandofcustomeri,andletQbethevehiclecapacity.

WhileseveralmodelsareavailablefortheVRPTW,thisproblemisoftenformulatedasamulticommoditynetworkflowmodelwithtimewindowandca-pacityconstraints.Thismodelinvolvestwotypesofvariables:binaryvariablesxkij,(i󰀓j)∈A,k∈K,equalto1ifandonlyifarc(i󰀓j)isusedbyvehiclek,and

k,i∈N,k∈K,indicatingthetimeatwhichvehiclekcontinuousvariableswi

startsservicingvertexi.Letδ+(i)={j:(i󰀓j)∈A}andδ−(j)={i:(i󰀓j)∈A}.Theproblemcanthenbestatedasfollows(see,e.g.,Desrochersetal.,1988):

󰀂󰀂

minimize(11)cijxkij

k∈K(i󰀓j)∈A

subjectto

󰀂󰀂

k∈Kj∈δ+(i)

xkij=1󰀓

i∈N󰀓

(12)(13)

k∈K󰀓j∈N󰀓

(14)(15)

k∈K󰀓(i󰀓j)∈A󰀓

(16)(17)(18)

󰀂

xk0j=1󰀓xkij

󰀂

k∈K󰀓xkji=0󰀓

j∈δ+(0)

󰀂

i∈δ−(j)

󰀂

i∈δ+(j)

xki󰀓n+1=1󰀓

k∈K󰀓

󰀆k󰀇k

w+s+t−wxkiijijij󰀁0󰀓

i∈δ−(n+1)

kai󰀁wi󰀁bi󰀓k∈K󰀓i∈V󰀓󰀂󰀂

qixkk∈K󰀓ij󰀁Q󰀓i∈N

j∈δ+(i)

Ch.6.VehicleRouting387

xkij∈{0󰀓1}󰀓

k∈K󰀓(i󰀓j)∈A󰀒

(19)

Theobjectivefunction(11)minimizesthetotalroutingcost.Constraints

(12)statethateachcustomerisvisitedexactlyonce,whileconstraints(13)–(15)ensurethateachvehicleisusedexactlyonceandthatflowconservationis

ksatisfiedateachcustomervertex.Theconsistencyofthetimevariableswi

isensuredthroughconstraints(16)whiletimewindowsareimposedby(17).Theseconstraintsalsoeliminatesubtours.Finally,constraints(18)enforcethevehiclecapacityrestriction.

Formulation(11)–(19)isnonlinearbecauseofconstraints(16).Thesecon-straintscan,however,belinearizedasfollows:

󰀆󰀇kk

wj(20)󰀂wi+si+tij−Mij1−xkk∈K󰀓(i󰀓j)∈A󰀓ij󰀓whereMij=max{0󰀓bi+si+tij−aj}isaconstant.AssuggestedbyDesrochers

andLaporte(1991),theboundsonthetimevariablesbkicanalsobestrength-ened:

󰀂

k

wi󰀂ai+max{0󰀓aj−ai+sj+tji}xkk∈K󰀓i∈V󰀓(21)ji󰀓

j∈δ−(i)

kwi

󰀁bi−

󰀂

max{0󰀓bi−bj+si+tij}xkij󰀓

k∈K󰀓i∈V󰀒(22)

j∈δ+(i)

3.2ExactalgorithmsfortheVRPTW

Asformostothervehicleroutingproblems,itisdifficulttosolvethe

VRPTWexactlythroughclassicalsimplex-basedbranch-and-boundmethods,evenforsmallinstances.ThisisinlargepartexplainedbythefactthattheLPrelaxationoftheproblemprovidesaweaklowerbound.Thefirstoptimiza-tionalgorithmfortheVRPTWcanbeattributedtoKolenetal.(1987)whouseddynamicprogrammingcoupledwithstatespacerelaxation(Christofidesetal.,1981b)tocomputelowerboundswithinabranch-and-boundalgorithm.Instanceswithn󰀁15weresolvedusingthisapproach.Mostsubsequentalgo-rithmsrelyeitheronthegenerationofvalidinequalitiestostrengthentheLPrelaxationoronmathematicaldecompositiontechniques.Thissectionreviewsthethreemainavailableapproaches:Lagrangianrelaxation,columngener-ation,andbranch-and-cut.AdditionalreferencesonthesubjectcanalsobefoundintheCordeauetal.(2002a)review.

3.2.1Lagrangianrelaxationbasedalgorithms

LagrangianrelaxationcanbeappliedtotheVRPTWinseveralways.Itiswellknownthatwhenthesubproblemobtainedbyrelaxingsomeoftheconstraintspossessestheintegralityproperty,thebestlowerboundobtainedbyLagrangianrelaxation(i.e.,thevalueoftheLagrangiandual)isequaltothevalueofthelinearprogrammingrelaxationoftheoriginalproblem.But

388J.-F.Cordeauetal.

asmentionedabove,theLPrelaxationofformulation(11)–(19)providesaweaklowerboundwhichwillusuallypreventtheproblemfrombeingsolvedbybranch-and-bound.Asaresult,successfulimplementationsofLagrangianrelaxationfortheVRPTWshouldretainatleastsomeofthecomplicatingcon-straintsinthesubproblem.

Fisher(1994)andFisheretal.(1997)havedescribedLagrangianrelaxationbasedonm-trees(seeSection2.2.1).Thisapproachrelaxestheflowconserva-tionconstraintsaswellasthecapacityandtimewindowconstraints.ViolatedcapacityconstraintsarehandledbyidentifyingsubsetsofcustomersS⊆Nthatmustbevisitedbyatleastκ(S)vehiclesandimposingtheconstraint

󰀂󰀂󰀂

xk(23)ij󰀂κ(S)󰀒

k∈Ki∈V\\Sj∈S

TheseconstraintsarerelaxedinaLagrangianfashionsothattheresulting

problemremainsanm-treeproblemwithmodifiedcosts.Timewindowsarehandledsimilarlybyidentifyinginfeasiblepathsandimposingtheconstraintthatatleastonearcinthepathbeleftoutofthesolution.ThisapproachhassolvedafewoftheSolomon(1987)testinstanceswithn=100.Inadditiontothem-treerelaxationmethod,Fisheretal.(1997)havealsoexperimentedwithavariablesplittingapproachinwhichadditionalvariablesyik,equalto1ifandonlyifcustomeriisvisitedbyvehiclek,areintroducedintheformu-󰀁klation,andtheconstraintsj∈Vxkij=yi(i∈N,k∈K)aredualized.The

Lagrangiansubproblemdecomposesintoasemi-assignmentproblemintheyikvariableswhichissolvablebyinspection,andasetofmelementaryshortestpathproblemswithtimewindowsandcapacityconstraints.

AnotherpossibleLagrangianrelaxationconsistsofdualizingthedemandconstraints.Letλ=(λi)(i∈N)bethevectorofmultipliersassociatedwithconstraints(12)requiringthateachcustomerbevisitedexactlyonce.Forgivenvaluesofthemultipliers,theLagrangiansubproblemL(λ)obtainedbyrelax-ingtheseconstraintsintheobjectivefunctionis

󰀂󰀂󰀂

k

(cij−λi)xij+λi󰀓min(24)

k∈K(i󰀓j)∈A

i∈N

subjecttoconstraints(13)–(19).

Thissubproblemdoesnotpossesstheintegralityproperty.Itdoes,however,decomposeintomdisjointelementaryshortest-pathproblemswithcapacityandtimewindowconstraints.Whenallvehiclesareidentical,asingleprob-lemcanbesolvedtocomputethelowerbound.TheLagrangiandual,i.e.,theproblemoffindingoptimalmultipliersthatmaximizeL(λ),isaconcavenondifferentiablemaximizationproblem.Usingsubgradientandbundlemeth-ods,KohlandMadsen(1997)wereabletosolvesomeinstanceswithupto100customers.Theyreportedoptimalsolutionstoeachofthe27clusteredandshort-horizonSolomoninstances.

Ch.6.VehicleRouting389

Kallehaugeetal.(2006)havedevelopedastabilizedcutting-planealgorithmtosolvetheLagrangiandual.CuttingplanesaregeneratedbysolvingtheLa-grangiansubproblemandareintroducedinamasterproblemwhichimposesbounds(i.e.,atrustregion)onthedualvariablestoensurethestabilityoftheirvaluesfromoneiterationtothenext.Optimizingtherelaxedmasterproblem(amaximizationlinearprogram)providesalowerboundonthevalueoftheoriginalproblem.Toobtainfeasibleintegersolutions,thecutting-planealgo-rithmisembeddedwithinabranch-and-boundalgorithmandvalidinequalitiesareintroducedinthemasterproblem.Becausetherelaxedmasterproblemisstatedonthedualvariables,violatedsubtoureliminationconstraintsand2-pathinequalities(seeSection3.2.2)areaddedascolumnstothisproblem.ThisapproachhasyieldedgoodresultsontheSolomontestinstancesandwasabletosolvetwolargeinstanceswith400and1000customers,respectively.3.2.2Columngenerationalgorithms

Columngenerationisintimatelyrelatedtoconstraintgenerationandcanbeseenasaspecialwayofupdatingthemultipliersassociatedwiththerelaxedconstraints.LetΩkdenotethesetoffeasiblepathsforvehiclek∈K.Foreach

kbethecostofthispathandletθkbeabinaryvariablepathω∈Ωk,letcωω

equalto1ifandonlyifvehiclekusespathω.Letalsoaiωbethenumberoftimescustomeri∈Nisvisitedbypathω.AsfirstsuggestedbyBalinskiandQuandt(1964),theVRPTWcanbestatedasfollows:

󰀂󰀂

kk

minimize(25)cωθω

k∈Kω∈Ωk

subjectto

󰀂󰀂

k∈Kω∈Ωk

kaiωθω=1󰀓

i∈N󰀓

(26)(27)(28)

󰀂

kθω=1󰀓

k∈K󰀓k∈K󰀓ω∈Ωk󰀒

ω∈Ωk

k

∈{0󰀓1}󰀓θω

BecausethesetsΩkarelikelytohaveaverylargecardinality,thisproblem

canbetackledbyabranch-and-boundalgorithminwhichthelinearrelaxationsaresolvedbycolumngeneration.Ateachnodeoftheenumerationtree,are-strictedcolumngenerationmasterproblemissolvedoverthecurrentsetofcolumns.Newcolumnsofnegativereducedcostaregeneratedbysolvingare-sourceconstrainedshortestpathproblem(13)–(19)withmodifiedarccostsreflectingthecurrentvaluesofthedualvariablesassociatedwiththecon-straintsofthecolumngenerationmasterproblem.Thisprocessstopswhennonegativereducedcostcolumncanbegenerated.Becausethecolumngenera-tionsubproblemisequivalenttotheLagrangiansubproblemL(λ),thelowerboundprovidedbycolumngenerationisequaltothevalueoftheLagrangian

390J.-F.Cordeauetal.

dual.ThedualoftheLPrelaxationofformulation(25)–(28)is,infact,equiv-alenttotheLagrangiandualdefinedintheprevioussection.ThisformulationcanalsobeobtainedbyapplyingtheDantzig–Wolfedecompositionprinciple(DantzigandWolfe,1960)totheoriginalformulation(11)–(19).

Branchingmustbeperformedateachnodeofthebranch-and-boundtree,wheretheoptimalsolutiontothelinearrelaxationincludesfractionalpathvariables.Whileitisinprinciplepossibletobranchdirectlyonfractionalθωvariables,thisapproachisdifficulttoimplementinpractice.Indeed,itiseasytosetsuchvariablesequalto1butitismuchmoredifficulttoimposetheop-positedecision.Inthelattercase,caremustbetakentoensurethatthesamepathwillnotbegeneratedmorethanoncebythesubproblem.Tothispurpose,onecoulduseamodifieddynamicprogrammingalgorithmtoimplicitlyhandleforbiddenpaths,orap-shortestpathalgorithmwherepisequaltothenum-berofforbiddenpathsplusone.Thiswouldensurethegenerationofatleastonevalidpathofnegativereducedcostwheneveroneexists.Amoreconve-nientbranchingschemeconsistsofmakingdecisionsontheoriginalarcflowvariablesxkijoronsumsofthesevariables.Forexample,binarydecisionscanbemadeonthefollowingsumofvariables:

󰀂󰀂

xkij󰀓

j∈N󰀁k∈K󰀁

wherei∈N,N󰀁⊆δ+(i),andK󰀁⊆K.Forcingthissumtobeequalto1

requiresthatsomevertexinsubsetN󰀁bevisitedimmediatelyafteribysomevehicle.If|N󰀁|=1,thenthecorrespondingvertexmustbevisitedafteribysomevehicle.If|K󰀁|=1,thenvertexiisimplicitlyassignedtovehiclek.Thespecialcase|N󰀁|=1and|K󰀁|=1isequivalenttoforcingxkij=1forsomegivenjandk.Itisworthpointingoutthatallsuchdecisionscanbehandleddirectlyatthesubproblemlevelthroughthesimpleeliminationofarcsinthenetworks.

ColumngenerationwassuccessfullyappliedtotheVRPTWbyDesrochersetal.(1992)andbyKohletal.(1999).Thelatterauthorsalsousedvalidinequalitiestostrengthentheboundsobtainedbycolumngeneration.Morespecifically,let

󰀂󰀂󰀂

x(S)=xkij

k∈Ki∈V\\Sj∈S

denotetheflowintosetS⊆Nanddenotebyκ(S)theminimumnumberof

vehiclesneededtoserveallcustomersinS.Thentheconstraint

x(S)󰀂κ(S)

(29)

isavalidinequalityfortheVRPTWandiscalledaκ-pathinequality.Com-putingκ(S)isadifficultproblemwhichisequivalenttosolvingtheVRPTWonasubsetofverticeswiththeobjectiveofminimizingthenumberofvehi-clesused.Kohletal.(1999)have,infact,restrictedtheirattentiontothecase

Ch.6.VehicleRouting391

κ=2.Determiningwhetherκ(S)=1foraparticularsubsetScanbeachievedbycheckingthatthecapacityofasinglevehicleissufficientandthecorre-spondingTSPTWisfeasible.ThelatterproblemisNP-hardbutcanbesolvedrelativelyquicklybydynamicprogrammingforsmallinstances.ThealgorithmofKohletal.wascapableofsolving70ofthe87Solomonshort-horizonin-stancestooptimality.CookandRich(1999)haveextendedthisapproachtothecaseκ󰀁6byusingparallelcomputingandreplacingtheTSPTWfeasibilityproblemwithaVRPTW.Theywerethusabletosolve80oftheshort-horizoninstances.Theyalsosolved30ofthe81long-horizoninstances.

WhiletheconstrainedelementaryshortestpathproblemisNP-hard,therelaxationobtainedbyallowingcyclescanbesolvedbyapseudopolynomiallabelingalgorithm(see,e.g.,DesrochersandSoumis,1988).Becauseoftimewindowsandcapacityconstraints,thesecycleswillneverthelessbeoffinitelength.Thisrelaxationwillofcourseweakenthevalueofthelowerbound,butcycleeliminationprocedurescanbeusedtocircumventthisdifficulty.Aproce-dureforeliminating2-cycles(i.e.,cyclesoftheform(i󰀓j󰀓i))wasfirstproposedbyHoucketal.(1980).Morerecently,IrnichandVilleneuve(2003)developedanefficientapproachtoforbidcyclesoflengthgreaterthan2.Experimentsperformedbytheauthorsshowthatk-cycleeliminationwithk󰀂3cansub-stantiallyimprovethelowerbounds.Embeddingthistechniquewithincolumngenerationenabledtheexactsolutionof15previouslyunsolvedinstancesoftheSolomonbenchmarkset.

Recently,Chabrier(2006)proposedamodifiedlabelingalgorithmtohandletheconstrainedelementaryshortestpathproblemandthusobtainimprovedlowerbounds.Inthisalgorithm,bothexactandheuristicdominancerulesareconsidered.Whenevertheheuristicapproachcannotfindapathofnegativereducedcost,theexactbutslowerimplementationisused.Thisapproachhasallowedtheauthortofindtheoptimalsolutionto17previouslyunsolvedlong-horizoninstancesfromtheSolomonbenchmarkset.

PromisingresultswerealsoreportedbyDannaandLePape(2003)whode-velopedacooperationschemebetweencolumngenerationandlocalsearchappliedtotheVRPTW.Duringthebranch-and-priceprocess,localsearchisregularlyappliedfromthebestknownintegersolution.Thisoftenresultsinanimprovedupperboundthatcanthenbeusedtoprunenodesintheenumer-ationtree.Furthermore,columnsassociatedwithsolutionsidentifiedduringlocalsearchcanbefedintotherestrictedmasterproblem.Thebranch-and-pricealgorithmthusbenefitsfromlocalsearchbybeingprovidedatanearlystagewithhighqualityupperbounds,resultinginasmallersearchtree.Inturn,localsearchbenefitsfrombranch-and-pricebyworkingwithavarietyofdiffer-entinitialsolutions,resultinginaneffectiveformofdiversification.

3.2.3Abranch-and-cutalgorithm

Abranch-and-cutalgorithmfortheVRPTWwasdevelopedbyBardetal.(2002).AsinmostsuchalgorithmsfortheVRP,theproblemisformulatedusingtwo-indexvariablesxijequalto1ifandonlyifavehicletravelsdirectly

392J.-F.Cordeauetal.

fromvertexitovertexj.Thealgorithmincorporatesfivetypesofinequali-ties:subtoureliminationconstraints,capacityconstraints,combinequalities,incompatiblepairinequalities,andincompatiblepathinequalities.AteachnodeofthesearchtreeanupperboundiscomputedbymeansoftheGreedyRandomizedAdaptiveSearchProcedure(GRASP)describedbyKontoravdisandBard(1995).

Incompatiblepairinequalitiesrelyontheexistenceofvertexpairsthatcan-notbelongtothesamevehicleroute.IfiandjdenotetwoincompatibleverticesandP=(i󰀓h1󰀓󰀒󰀒󰀒󰀓h|P|−2󰀓j)isapath,thenthefollowinginequal-ityisvalid:

xi1󰀓h1+xh1󰀓i+···+xh|P|−2󰀓j+xj󰀓h|P|−2󰀁|P|−2󰀒

(30)

Incompatiblepathinequalitiesaresimilartoinfeasiblepairinequalitiesbuttakearcorientationsintoaccount.IfiandjaretwoverticessuchthaticannotprecedejinafeasiblevehicleroutethenthefollowinginequalityisvalidforanypathPbetweeniandj:

xi󰀓h1+xh1󰀓h2+···+xh|P|−2󰀓j󰀁|P|−2󰀒

(31)

Theauthorspresentfourseparationheuristicstoidentifyviolatedcapacityconstraints.ThefirstisbasedonthecomputationofminimumcutsinG.ThesecondappliesagraphshrinkingheuristicsimilartothatproposedbyAraqueetal.(1994)fortheVRP.Thethirdconsistsofidentifyingconnectedcom-ponentsinGthatdonotcontainthedepot.Finally,thefourthisaheuristicproposedbyKohletal.(1999)toidentifyviolated2-pathinequalities.Heuris-ticseparationalgorithmsarealsodescribedfortheidentificationofviolatedcombinequalities,incompatiblepathinequalities,andincompatiblepairin-equalities.Thebranch-and-cutalgorithmofBard,Kontoravdis,andYuhasobtainedgoodresultsontheSolomontestinstances:all50-customerinstancesandseveral100-customerinstancesweresolvedoptimally.3.3HeuristicsfortheVRPTW

BecauseofthedifficultyoftheVRPTWanditshighpracticalrelevance,thereisagenuineneedtodevelopfastalgorithmscapableofproducinggoodqualitysolutionsinshortcomputingtimes.Heuristicscanalsobeusedtopro-videupperboundsfortheexactalgorithmsdescribedintheprevioussection.ThissectiondescribesthethreemainclassesofheuristicsfortheVRPTW:constructionheuristics,improvementheuristics,andmetaheuristics.

3.3.1Constructionheuristics

Routeconstructionalgorithmsworkbyinsertingcustomersoneatatimeintopartialroutesuntilafeasiblesolutionisobtained(seeSection2.3.1).Routescaneitherbeconstructedsequentiallyorinparallel.Constructional-gorithmsaremainlydistinguishedbytheorderinwhichcustomersareselectedandbythemethodusedtodeterminewhereacustomershouldbeinserted.

Ch.6.VehicleRouting393

SeveralsequentialinsertionheuristicsfortheVRPTWwereproposedbySolomon(1987).Amongtheseheuristics,themostefficient,calledI1,con-sistsoffirstselectingthefarthestcustomerfromthedepotasaseedcustomer.Theremainingcustomersaretheninsertedoneatatimeintothecurrentroutebyselectingateachiterationthecustomerthatmaximizesasavingmeasure,takingintoaccountthedistancefromthedepotandthecostofinsertioninthecurrentroute.Thecustomeristheninsertedinthepositionminimizingaweightedcombinationofextradistanceandextratimerequiredtovisitthecustomer.Theprocessisrepeateduntilallcustomershavebeeninsertedoritisnolongerpossibletoinsertadditionalcustomerswithoutviolatingeitherthecapacityortimewindowconstraints.Atthispointanewrouteisinitializedbyselectinganewseedcustomerandtheprocessrepeatsitselfuntilnocustomersremain.

AparallelversionofthisheuristicwaslaterdevelopedbyPotvinandRousseau(1993)whoproposedageneralizedregretmeasuretoselectthenextcustomerforinsertion.Thismeasurereflectsthecostincreaselikelytoresultifacustomerisnotassignedtotherouteminimizingtheinsertioncost.Fur-therimprovementstothesequentialheuristicofSolomon(1987)werealsodescribedbyIoannouetal.(2001)whoproposedmodifyingthecriteriaforcustomerselectionandinsertiontotakeintoaccounttheimpactoftheinser-tiononallroutedandunroutedcustomers.

3.3.2Improvementheuristics

Improvementheuristicsiterativelyimproveaninitialfeasiblesolutionbyperformingexchangeswhilemaintainingfeasibility.Theprocessnormallystopswhennofurtherexchangecanbemadewithoutdeterioratingthesolu-tion.Improvementheuristicsaremainlycharacterizedbythetypeofexchangesconsideredateachiteration.Thesedefinetheneighborhoodofasolution,i.e.,thesetofsolutionsreachablefromthecurrentsolutionbyperformingasingleexchange.

ThefirstimprovementheuristicsfortheVRPTW(see,e.g.,Russell,1977;BakerandSchaffer,1986)wereadaptationsofthe2-opt(Croes,1958),3-opt(Lin,1965),andOr-opt(Or,1976)edgeexchangemechanismsoriginallyin-troducedfortheTSP.Becauseoftimewindows,checkingwhetheragivenexchangemaintainsfeasibilityofthesolutioncanberathertimeconsuming.StartingwiththeworkofSavelsbergh(1985),severalattemptshavebeenmadetodevelopefficientimplementationsofneighborhoodevaluationproceduresforλ-exchanges(seealsoSolomonetal.,1988;Savelsbergh,1990,1992).Acomparisonof2-opt,3-opt,andOr-optexchangeheuristicsfortheVRPTWwasperformedbyPotvinandRousseau(1995)whoalsointroducedanewex-change,called2-opt*,aspecialcaseof2-optthatmaintainstheorientationofthesubroutesinvolvedintheexchange.Thisisaccomplishedbyremovingthelastn1customersfromaroutek1,insertingthemafterthefirstn2customersofaroutek2,andreconnectingtheinitialpartofroutek1withtheterminalpartofroutek2.AnotherexchangemechanismwasdescribedbyThompsonand

394J.-F.Cordeauetal.

Psaraftis(1993)whoproposedtransferringsetsofcustomersinacyclicfashionbetweenroutes.

Severalattemptshavealsobeenmadetointegrateconstructionandim-provementheuristics.Russell(1995)developedaprocedurethatembedsrouteimprovementwithinthesolutionconstructionprocess.Moreprecisely,cus-tomerscanbeswitchedbetweenroutes,androutescanbeeliminatedduringtheconstructionofthesolutionwhichisperformedbyaproceduresimilartothatofPotvinandRousseau(1993).Morerecently,CordoneandWolflerCalvo(2001)haveproposedacompositeheuristicinwhichasetofinitialsolutionsisfirstconstructedbymeansofSolomon’sI1insertionheuristicandanimprove-mentprocedureisthenappliedtoeachofthem.Thisprocedureapplies2-optand3-optexchangesandattemptstoreducethenumberofroutesbyrelocat-ingcustomers.Toescapefromlocaloptima,theheuristicalternatesbetweenanobjectiveminimizingtotaldistanceandanobjectiveminimizingtotalrouteduration(theprimaryobjectivebeinginbothcasestominimizethenumberofroutes).SeveraldeterministiclocalsearchheuristicswerealsoproposedbyBräysy(2002),basedonanewthree-phaseapproach.Inafirstphase,anini-tialsolutioniscreatedwithoneoftwoproposedrouteconstructionheuristics(acheapestinsertion-basedheuristicwithperiodicrouteimprovementsandaparallelsavingsheuristic).Thesecondphaseattemptstoreducethenumberofroutesbyapplyingalocalsearchoperatorbasedonejectionchains(see,e.g.,Glover,1992).Finally,thethirdphaseappliesOr-optexchangestoreducethetotallengthoftheroutes.

3.3.3Metaheuristics

MostoftherecentresearchonapproximatealgorithmsfortheVRPTWhasconcentratedonthedevelopmentofmetaheuristics.Unlikeclassicalimprove-mentmethods,metaheuristicsusuallyincorporatemechanismstocontinuetheexplorationofthesearchspaceafteralocalminimumisencountered.Tabusearchheuristics.SomeofthefirstapplicationsoftabusearchtotheVRPTWcanbeattributedtoSemetandTaillard(1993)andtoPotvinetal.(1996)whocombinedSolomon’sinsertionheuristicswithimprovementschemesbasedonvertexandchainexchangeprocedures.

AmoresophisticatedalgorithmwaslaterdevelopedbyTaillardetal.(1997)fortheVRPwithsofttimewindowsinwhichvehiclesareallowedtoarrivelateatcustomerlocationsbuttimewindowviolationsarepenalizedintheobjectivefunction.ThisheuristicreliesontheconceptofadaptivememoryintroducedbyRochatandTaillard(1995)andonthedecompositionandreconstructionproceduredevelopedbyTaillard(1993)fortheclassicalVRP.Anadaptivememoryisapoolofroutesextractedfromthebestsolutionsfoundduringthesearch.Thismemoryisfirstinitializedwithroutesproducedbyarandomizedinsertionheuristic.Ateachiterationofthemetaheuristic,asolutioniscon-structedfromtheroutesbelongingtotheadaptivememoryandisimprovedthroughtabusearch.Theroutesoftheresultingsolutionarethenstoredin

Ch.6.VehicleRouting395

theadaptivememoryifthissolutionimprovesupontheworstsolutionalreadystored.Thetabusearchheuristicusesanexchangeoperator,calledCROSSex-change,whichswapssequencesofconsecutivecustomersbetweentworoutes.Individualroutesarealsooptimizedbyremovingtwoedgesfromarouteandmovingthesegmentbetweenthesetwoedgestoanotherlocationwithintheroute.AparallelcomputingimplementationofthisapproachisdescribedinBadeauetal.(1997).

Ametaheuristicembeddingreactivetabusearch(see,e.g.,BattitiandTecchiolli,1994)withintheparallelconstructionheuristicofRussell(1995)wasdevelopedbyChiangandRussell(1997).Inthisimplementation,thetabulistlengthisincreasedifidenticalsolutionsoccurtoofrequentlyandisdecreasedifnofeasiblesolutioncanbefound.Usingavarietyofcustomerorderingrulesandcriteriaformeasuringthebestinsertionpoints,themetaheuristicfirstconstructssixdifferentinitialsolutionsbygraduallyinsertingcustomersandrepeatedlyapplyingtabusearchtothepartialsolutions.Thebestsolutionobtainedafterthisstepisfurtherimprovedthroughtabusearch.Exchangesareperformedbyusingsomeoftheλ-interchangesofOsman(1993):switchacustomerfromoneroutetoanotherandswaptwocustomersbelongingtodifferentroutes.

Morerecently,atabusearchheuristicwasdevelopedbyCordeauetal.(2001)fortheVRPTWandtwoofitsgeneralizations:theperiodicVRPTWandthemultidepotVRPTW(seealsoCordeauetal.,1997).Inthisheuris-tic,aninitialsolutionisobtainedbymeansofamodifiedsweepheuristic.Infeasiblesolutionsareallowedduringthesearchandviolationsofcapacity,durationortimewindowconstraintsarepenalizedintheobjectivefunctionthroughdynamicallyupdatedpenaltyfactors.Ateachiterationofthetabusearch,acustomerisremovedfromitscurrentrouteandinsertedintoadif-ferentroutebyusingaleastcostinsertioncriterion.Acontinuousdiversifica-tionmechanismthatpenalizesfrequentlymadeexchangesisusedtodrivethesearchprocessawayfromlocaloptima.Finally,apost-optimizerbasedonaspecializedTSPTWheuristic(Gendreauetal.,1998)isappliedtoindividualroutes.AnimprovementtothisheuristicforthehandlingofroutedurationconstraintswasrecentlydescribedbyCordeauetal.(2004).TheheuristicwasalsoextendedbyCordeauandLaporte(2001)tohandleheterogeneousvehi-cles.OthertabusearchalgorithmsfortheVRPTWwereproposedbyBrandão(1998),SchulzeandFahle(1999),andLauetal.(2003).

Geneticalgorithms.HombergerandGehring(1999)havedescribedtwoevo-lutionstrategiesfortheVRPTW.Botharebasedonthe(μ󰀓λ)strategy:start-ingfromapopulationwithμindividuals,subsetsofindividualsarerandomlyselectedandrecombinedtoyieldatotalofλ>μoffspring.Eachoffspringisthensubjectedtoamutationoperator,andtheμfittestareselectedtoformthenewpopulation.Inthefirstmethod,newindividualsaregenerateddirectlythroughmutationsandnorecombinationtakesplace.Mutationsareobtainedbyperformingoneorseveralmovesfromthe2-opt,Or-opt,and

396J.-F.Cordeauetal.

1-interchangefamilies.Inthesecondmethod,offspringaregeneratedthroughatwo-steprecombinationprocedureinwhichthreeindividualsareinvolved.Inbothmethods,thefitnessofanindividualdependsfirstonthenumberofvehi-clesused,andsecondonthetotaldistancetraveled.GehringandHomberger(2002)laterproposedatwo-phasemetaheuristicinwhichthefirstphasemin-imizesthenumberofvehiclesthroughanevolutionstrategy,whilethesecondoneminimizesthetotaldistancethroughtabusearch.Aparallelizationstrat-egyisalsousedtorunseveralconcurrentsearchesofthesolutionspacewithdifferentlyconfiguredmetaheuristicscooperatingthroughtheexchangeofso-lutions.

Bergeretal.(2003)havedevelopedageneticalgorithmthatconcurrentlyevolvestwodistinctpopulationspursuingdifferentobjectivesunderpartialconstraintrelaxation.Thefirstpopulationaimstominimizethetotaldistancetraveledwhilethesecondonefocusesonminimizingtheviolationsofthetimewindowconstraints.Themaximumnumberofvehiclesimposedinthefirstpopulationisequaltokminwhereasthesecondpopulationisallowedonlykmin−1vehicles,wherekminreferstothenumberofroutesinthebestknownfeasiblesolution.Wheneveranewfeasiblesolutionemergesfromthesecondpopulation,thefirstpopulationisreplacedwiththesecondandthevalueofkminisupdatedaccordingly.Tworecombinationoperatorsandfivemutationoperatorsareusedtoevolvethepopulations.Thisapproachhasprovedtoberatherefficientinminimizingthenumberofvehiclesused.

Morerecently,MesterandBräysy(2005)havedevelopedaniterativemeta-heuristicthatcombinesguidedlocalsearchandevolutionstrategies.Aninitialsolutionisfirstcreatedbyaninsertionheuristic.Thissolutionisthenimprovedbytheapplicationofatwo-stageprocedure.Thefirststageconsistsofaguidedlocalsearchprocedureinwhich2-opt*andOr-optexchangesareperformedtogetherwith1-interchanges.Thislocalsearchisguidedbypenalizinglongarcsappearingofteninlocalminima.Thesecondstageiterativelyremovesaselectedsetofcustomersfromthecurrentsolutionandreinsertsthere-movedcustomersatminimumcost.Thesetwostagesarethemselvesrepeatediterativelyuntilnofurtherimprovementcanbeobtained.Verygoodresultsarereportedbytheauthorsonlarge-scaleinstances.AccordingtoBräysyandGendreau(2005b),thethreeapproachesjustdescribedseemtoproducethebestresultsamonggeneticalgorithms.OthersuchalgorithmshavealsobeenproposedbyanumberofresearchersincludingPotvinandBengio(1996),ThangiahandPetrovic(1998),andTanetal.(2001).

Othermetaheuristics.KontoravdisandBard(1995)havedescribedatwo-phaseGRASPfortheVRPTW.Anumberofroutesarefirstinitializedbyselectingseedcustomers.Theremainingcustomersarethengraduallyinsertedintheroutesbyusingarandomizedleastinsertioncostprocedure.Duringthisprocess,periodicattemptsaremadetoimprovetheroutesbylocalsearch.Inthisphasecertainroutesmaybeeliminatedbymeansofadeterministicproce-durethatattemptstorelocatethecustomerstoadifferentroute.Toestimate

Ch.6.VehicleRouting397

therequirednumberofroutes,theauthorshaveproposedthreelowerboundsforfleetsize.Twoarebasedonbinpackingstructuresgeneratedbythecapac-ityortimewindowconstraints.Theotherisderivedfromtheassociatedgraphcreatedbypairsofcustomershavingincompatibledemandsortimewindows.AguidedlocalsearchalgorithmfortheVRPTWwasintroducedbyKilbyetal.(1998).Inguidedlocalsearch,theobjectivefunctionisaugmentedwithapenaltytermreflectingtheproximityofthecurrentsolutionvaluetothatofpreviouslyencounteredlocalminima.Themethodisusedtodrivealocalsearchheuristicthatmodifiesthecurrentsolutionbyperformingoneoffourmoves:2-optexchangeswithinaroute,switchingacustomerfromoneroutetoanother,exchangingcustomersbelongingtotwodifferentroutes,andswap-pingtheendsoftworoutes.Allcustomersarefirstassignedtoavirtualvehicleandtheroutesfortheactualvehiclesareleftempty.Becauseapenaltyisas-sociatedwithnotvisitingacustomer,afeasiblesolutionwillbeconstructedintheprocessofminimizingcost.Thelocalsearchalgorithmstartsfromthissolutionandperformsaseriesofexchangesuntilalocalminimumisreached.Theobjectivefunctionisthenmodifiedbyaddingatermpenalizingthepres-enceofthearcsusedinthissolution.Thesearchiteratesbyfindingnewlocalminimaandaccumulatingpenaltiesuntilastoppingcriterionismet.Thisap-proachwaslatercoupledwithtabusearchandembeddedwithinaconstraintprogrammingframeworkbyDeBackeretal.(2000).

Gambardellaetal.(1999)havedevelopedanantcolonyoptimizationalgo-rithmfortheVRPTWwhichassociatesanattractivenessmeasuretothearcs.Artificialantsrepresentparallelprocesseswholeroleistoconstructfeasiblesolutions.Todealwiththehierarchicalobjectiveoffirstminimizingthenum-berofvehiclesandthenminimizingdistance,twoantcoloniesareused,eachdedicatedtotheoptimizationofadifferentobjective.Thesecoloniescoop-eratebyexchanginginformationthroughpheromoneupdating.Wheneverafeasiblesolutionwithasmallernumberofvehiclesisfound,bothcoloniesarereactivatedwiththereducednumberofvehicles.

BentandVanHentenryck(2004)havedescribedatwo-stagehybridalgo-rithmthatfirstminimizesthenumberofroutesbysimulatedannealingandthenminimizestotaldistancetraveledbyusingalargeneighborhoodsearch(Shaw,1998)whichmayrelocatealargenumberofcustomers.Thefirststageusesalexicographicevaluationfunctiontominimizethenumberofroutes,maximizethesumofthesquaresoftheroutesizes,andminimizetheminimaldelay(ameasureoftimewindowtightness)ofthesolution.Theneighborhoodusedinthisstageconsistsof2-opt,Or-opt,relocating,exchange,andcrossovermoves.Inthesecondstage,subsetsofcustomersareremovedfromtheircur-rentrouteandreinsertedinpossiblydifferentroutes.Customersselectedforremovalarerandomlychosenbutthealgorithmfavorscustomersthataregeographicallyclosetoeachotherandbelongtodifferentroutes.Abranch-and-boundalgorithmisthenusedtoreinsertthesecustomers.

Afour-phasemetaheuristicbasedonamodificationofthevariableneigh-borhoodsearchwasdescribedbyBräysy(2003).Inthefirstphase,aninitial

398J.-F.Cordeauetal.

solutioniscreatedbyusingrouteconstructionheuristics.Duringthisprocess,thepartialroutesareperiodicallyreoptimizedthroughOr-optexchanges.Inthesecondphase,anattemptismadetoreducethenumberofroutesbyapply-ingarouteeliminationoperatorbasedonejectionchains.Inthethirdphase,fourlocalsearchproceduresembeddedwithinavariableneighborhoodsearch(see,e.g.,Mladenovi´candHansen,1997)areappliedtoreducethetotaldis-tancetraveled.TheseproceduresarebasedonmodificationstotheCROSSexchangesofTaillardetal.(1997)andcheapestinsertionheuristics.Inthefourthphase,amodifiedobjectivefunctionconsideringwaitingtimeisusedbythelocalsearchoperatorsinthehopeoffurtherimprovingthesolution.Morerecently,alocalsearchalgorithmwithrestartswasalsoproposedbyLiandLim(2003).Thisalgorithmfirstconstructsaninitialsolutionbyusinganinsertionheuristic.Localsearchisthenperformedfromthissolutionus-ingthreeexchangeoperatorsthatmovesegmentsofcustomerseitherbetweenroutesorwithinthesameroute.Wheneveralocalminimumisreached,mul-tiplerestartsareperformedstartingfromthebestknownsolution,andatabulistisusedtopreventcycling.

Alargenumberofothermetaheuristicsbasedonvariousparadigmshavebeendescribedinrecentyears.Foradditionalreferencesonapproximateal-gorithmsfortheVRPTWaswellasdetailedcomputationalexperiments,thereaderisreferredtorecentsurveysbyBräysyandGendreau(2005a,2005b).

4Theinventoryroutingproblem

TheInventoryRoutingProblem(IRP)isanimportantextensionoftheVRPwhichintegratesroutingdecisionswithinventorycontrol.TheproblemarisesinenvironmentswhereVendorManagedInventory(VMI)resupplypoliciesareemployed.Thesepoliciesallowavendortochoosethetimingandsizeofdeliveries.Inexchangeforthisfreedom,thevendoragreestoensurethatitscustomersdonotrunoutofproduct.Inamoretraditionalrelationship,wherecustomerscallintheirorders,largeinefficienciescanoccurduetothetimingofcustomers’orders(resultinginhighinventoryanddistributioncosts).Realizingthecostsavingsopportunitiesofvendormanagedinventorypolicies,however,isnotasimpletask,particularlywithalargenumberandvarietyofcustomers.Theinventoryroutingproblemachievesthisgoalbydeterminingadistributionstrategythatminimizeslongtermdistributioncosts.Thisdescriptionofthein-ventoryroutingproblemfocusesprimarilyondistribution.Inventorycontrolisrestrictedtoensuringthatnostockoutsoccuratthecustomers.Inventorycontroltakesamoreprominentrolewheninventoryholdingcostsareconsid-ered.Intheinventorycontrolliterature,theresultingenvironmentisusuallyreferredtoasaonewarehousemultiretailersystem.

InventoryroutingproblemsareverydifferentfromVRPs.Vehicleroutingproblemsoccurwhencustomersplaceordersandthevendor,onanygivenday,

Ch.6.VehicleRouting399

assignstheordersforthatdaytoroutesforvehicles.InIRPs,thedeliverycom-pany,notthecustomer,decideshowmuchtodelivertowhichcustomerseachday.Therearenocustomerorders.Instead,thedeliverycompanyoperatesundertherestrictionthatitscustomersarenotallowedtorunoutofproduct.Anotherkeydifferenceistheplanninghorizon.Vehicleroutingproblemstyp-icallydealwithasingleday,theonlyrequirementbeingthatallordershavetobedeliveredbytheendoftheday.Inventoryroutingproblemsaredefinedonalongerhorizon.Eachdaythedeliverycompanymakesdecisionsaboutwhichcustomerstovisitandhowmuchtodelivertoeachofthem,whilekeepinginmindthatdecisionsmadetodayhaveanimpactonwhathastobedoneinthefuture.Theobjectiveistominimizethetotalcostovertheplanninghorizonwhileensuringthatnocustomerrunsoutofproduct.4.1DefinitionoftheIRP

ThedeterministicIRPisconcernedwiththerepeateddistributionofasingleproductfromasinglefacility,toasetofncustomersoveraplanninghorizonoflengthT,possiblyinfinity.Customericonsumestheproductatarateui(sayvolumeperday)andcanmaintainalocalinventoryofproductofuptoamaximumofCi.TheinventoryatcustomeriisIi0attime0.Afleetofmho-mogeneousvehicles,withcapacityD,isavailableforthedistributionoftheproduct.Ifaquantitydiisdeliveredatcustomeri,thevendorearnsarewardequaltoridi.Ittakesavehicleatimetijtotraversearc(i󰀓j)ofthedistri-butionnetworkandacostcijisincurredwhendoingso.Theobjectiveistomaximizetheprofit(revenueminuscost)overtheplanninghorizon,withoutcausingstockoutsatanyofthecustomers.(Notethatbecauseproductusageisassumedtobedeterministicandnostockoutsareallowed,longrunrevenuesarefixedandthekeyistoreducedeliverycosts.)Adispatcherhastodecidewhentoserveacustomer,howmuchtodeliver,andwhichdeliveryroutestousetoservecustomers.

InthestochasticIRPcustomerdemandsaredefinedatdiscretetimein-stantstbymeansofrandomvariables.LetUt=(U1t󰀓󰀒󰀒󰀒󰀓Unt)denotethevectorofrandomcustomerdemandsattimet.Customerdemandsondiffer-entdaysareindependentrandomvectorswithajointprobabilitydistributionFthatdoesnotchangewithtime;thatis,U0󰀓U1󰀓󰀒󰀒󰀒isanindependentandiden-ticallydistributedsequence,andFistheprobabilitydistributionofeachUt.TheprobabilitydistributionFisknowntothedecisionmaker.ThevendorcanmeasuretheinventorylevelXitofeachcustomeriatanytimet.Ateachtimeinstantt,thevendormakesadecisionthatcontrolstheroutingofvehiclesandthereplenishmentofcustomerinventories.Becausedemandisuncertain,thereisoftenapositiveprobabilitythatacustomerwillrunoutofstock,andthusshortagescannotalwaysbeprevented.Shortagesresultinapenaltypisiiftheunsatisfieddemandondaytatcustomeriissi.Unsatisfieddemandistreatedaslostdemand.Theobjectiveistoconstructadistributionpolicymax-imizingtheexpecteddiscountedprofitoveraninfinitetimehorizon.

400J.-F.Cordeauetal.

4.2Motivatingexample

Toillustratethedifficultyofinventoryroutingproblems,wereproduceasmalldeterministicexampleintroducedbyFisheretal.(1982)andBelletal.(1983).TherelevantoptimaltourcostscanbederivedfromthenetworkshowninFigure1,e.g.,theoptimaltourcostsforvisitingcustomers1and2,denotedbyC1󰀓2,isequalto$210.Thevehiclecapacityis5000gallonsandcustomertankcapacityandusagedata,ingallons,areasfollows:

Customeri1234

di5000300020004000

ui1000300020001500

Asimpleschedulejointlyreplenishescustomers1and2aswellascustomers3and4onadailybasis.Thisscheduleisnaturalbecausecustomers1and2(3and4,respectively)areneareachother.Eachcustomerireceivesaquantityequaltoitsdailyconsumptionui.Thelong-runaveragecostofthisscheduleis420milesperday.Animprovedscheduleconsistsofacyclethatrepeatsitselfeverytwodays.Onthefirstday,onetripreplenishes3000gallonstocus-tomer2and2000gallonstocustomer3,atacostof340miles.Onthesecondday,twotripsaremade.Thefirsttripreplenishes2000gallonstocustomer1and3000gallonstocustomer2.Thesecondtripreplenishes2000gallonsto

Fig.1.Afour-customerexamplewithdistancesshownonedges.

Ch.6.VehicleRouting401

customer3and3000gallonstocustomer4.Eachtripcosts210miles.Theav-eragecostofthisscheduleis380milesperday,whichisnearly10%lowerthanthefirstschedule.

4.3ObservationsontheIRP

Beforedescribingsolutionapproaches,wepresentsomegeneralobser-vationsconcerninginventoryroutingproblemsandsomecommonelementsfoundinmostsolutionapproaches.

TheIRPisalong-termdynamiccontrolproblemwhichisextremelydifficulttosolve.Therefore,mostoftheavailablealgorithmssolveonlyashort-termplanningproblem.Inearlypublications,itwasoftenjustasingledaybutlater,short-termwasexpandedtoafewdays.Twokeyissuesneedtoberesolvedwithsuchapproaches:howtomodelthelong-termeffectofshort-termde-cisions,andwhichcustomerstoconsiderintheshort-termplanningperiod.Ashort-termapproachthatonlyminimizescostshasthetendencytodeferasmanydeliveriesaspossibletofutureplanningperiods,whichmayleadtoanundesirablesituationinthefuture.Therefore,aproperincorporationofthelong-termobjectiveintotheshort-termplanningproblemisessential.Thelong-termeffectofshort-termdecisionsneedstocapturethecostsandbenefitsofdeliveringtoacustomerearlierthannecessary.Thisusuallymeansdeliver-inglessandmayleadtohigherfuturedistributioncosts,butreducestheriskofastockoutandmaythusreducefutureshortagecosts.Decisionsregard-ingwhichcustomersneedtobeconsideredintheshort-termplanningperiodareusuallyguidedbysomemeasureoftheurgencytomakeadeliverytoacustomerandthequantitythatcanbedelivered.Usually,itisassumedthatcustomersconsideredintheshort-termplanningperiodmayactuallybevis-ited,butthedecisionwhetherornottoactuallyvisitthemstillhastobemade.Whentheshort-termplanningproblemconsistsofasingleday,theproblemcanbeviewedasanextensionoftheVRPandsolutiontechniquesfortheVRPcanbeadapted.Forexample,CampbellandSavelsbergh(2004c)havediscussedefficientimplementationsofinsertionheuristicstohandlesituationswherethedeliveryamounthastoliebetweenalowerandanupperbound,asopposedtobeingfixed.Inrelatedwork,CampbellandSavelsbergh(2004b)havestudiedtheproblemofdetermininganoptimaldeliveryscheduleforaroute,i.e.,givenasequenceofcustomervisits,determinethetimingofthevisitssoastomaximizethetotalamountoftheproductdeliveredontheroute.Becausesingledayapproachesusuallybasedecisionsonthelatestinventorymeasurementandapredictedusageforthatday,theyavoidthedifficultyofforecastinglong-termusage,whichmakestheproblemmuchsimpler.4.4Singlecustomeranalysis

Itisinsightfultoanalyzethe“simple”situationinwhichthereisonlyasinglecustomer.Theresultsofthistypeofanalysiscanbeusedeffectivelytoguide

402J.-F.Cordeauetal.

decisionsonwhichcustomerstoconsiderinashorttermplanninghorizon.ThematerialpresentedinthissubsectionisprimarilybasedonJailletetal.(2002),althoughmuchofitdatesbacktotheworkofDrorandBall(1987).Wefirstconsiderthedeterministiccase.Foreaseofnotation,lettheusagerateofthecustomerbeu,thestoragecapacityofthecustomerbeC,theinitialinventorylevelbeI0,thedeliverycosttothecustomerbec,andthevehiclecapacitybeQ.Itiseasytoseethatanoptimalpolicyistofillupthestoragespacepreciselyatthetimewhenitbecomesempty.ThereforethecostvTforaplanningperiodoflengthTis

󰀋󰀍󰀌󰀊

Tu−I0

vT=max0󰀓c󰀒

min{C󰀓Q}

Nowconsiderthestochasticcaseinwhichonedecidesdailywhethertomakeadeliverytothecustomerornot.ThedemandUbetweenconsecutivedecisionpoints,i.e.,thedemandperday,isarandomvariablewithknownprobabil-itydistributionandfinitemean.Assumingthatthestoragecapacityateachcustomerisatleastaslargeasthevehiclecapacityandthevendorcanonlymonitortheinventoryinthestoragespaceatthetimeofadelivery,itcanbeshownthatfortheinfinitehorizoncase,thereexistsanoptimalpolicythatfillsupthestoragespaceateachdeliveryand,followinganyscheduledorstock-outdelivery,plansthenextdeliveryddaysafter.Theoptimalreplenishmentintervaldisaconstantchosentominimizetheexpecteddailycost.

Ad-daypolicymakesadeliverytothecustomereveryddaysandde-liversasmuchaspossible,unlessastockoutoccursearlier.Insuchacase,thevehicleissentrightaway,whichgeneratesacostS.Itisassumedthatdeliveriesareinstantaneous,sothatnoadditionalstockoutpenaltiesarein-curred.Furthermore,assumethatinitiallythestoragespaceisfull.Letpjbetheprobabilitythatastockoutfirstoccursondayj(1󰀁j󰀁d−1).Thenp=p1+p2+···+pd−1istheprobabilitythatthereisastockoutinperiod[1󰀓󰀒󰀒󰀒󰀓d−1].Furthermore,letvT(d)betheexpectedtotalcostofthispolicyoveraplanningperiodoflengthT.Wenowhaveford>T

󰀂󰀇󰀆

vT(d)=pjvT−j(d)+S

1󰀁j󰀁T

andford󰀁T

vT(d)=

󰀂

1󰀁j󰀁d−1

󰀇󰀆󰀇󰀆

pjvT−j(d)+S+(1−p)vT−d(d)+c󰀒

Asaconsequence,theexpectedtotalcostoffillingupacustomer’stankeveryddaysoveraT-dayperiod(T󰀂d)isgivenby

vT(d)=α(d)+β(d)T+f(T󰀓d)󰀓

Ch.6.VehicleRouting403

whereα(d)isaconstantdependingonlyond,f(T󰀓d)isafunctionthattendstozeroexponentiallyfastasTtendstoinfinity,and

pS+(1−p)c

β(d)=󰀁󰀓

jpj1󰀁j󰀁d

withpd=1−p.Thevalueβ(d)isthelong-runaveragecostperday.To

determinethebestpolicyinthisclass,weneedtominimizevT(d)whichforlargeTmeansfindingavalueofdminimizingβ(d).4.5Thetwo-customerIRP

Whenmorethanonecustomerisserved,theproblembecomessignificantlyharder.Notonlyisitnecessarytodecidewhichcustomerstovisitnext,butonemustalsodeterminehowtocombinethemintovehicletours,andhowmuchtodelivertoeachofthem.Evenifthereareonlytwocustomers,thesedecisionsmaynotbeeasy.ThematerialintheremainderofthissectionisprimarilybasedonCampbelletal.(1998).

Ifthetwocustomersarevisitedtogether,itisintuitivelyclearthatgiventheamountdeliveredatthefirstcustomer,itisoptimaltodeliverasmuchaspossibleatthesecondone(determinedbytheremainingamountinthevehicle,andtheremainingcapacityatthesecondcustomer).Thustheproblemofdecidinghowmuchtodelivertoeachcustomerinvolvesasingledecision.However,makingthatdecisionmaynotbeeasy,asthefollowingtwo-customerstochasticIRPexampleshows.

Assumetheproductisdeliveredandconsumedindiscreteunitsandthateachcustomerhasastoragecapacityof20units.Thedailydemandsofthecus-tomersareindependentandidenticallydistributed(acrosscustomersaswellasacrosstime),withP(U=0)=0󰀒4andP(U=10)=0󰀒6.Theshortagepenaltyiss1=1000perunitatcustomer1ands2=1005perunitatcustomer2.Thevehiclecapacityis10units.Atthebeginningofeachdaytheinventoryatthetwocustomersismeasured,andthedecisionmakerdetermineshowmuchtodelivertoeachcustomer.Therearethreepossiblevehicletours,namelytoursexclusivelytocustomers1and2,ofcost120each,andatourtobothcus-tomers1and2,ofcost180.Onlyonevehicletourcanbecompletedperday.ThissituationcanbemodeledasaninfinitehorizonMarkovdecisionprocess,withtheobjectiveofminimizingtheexpectedtotaldiscountedcost.Becauseofthesmallsizeofthestatespace,itispossibletocomputetheoptimalexpectedvalueandanoptimalpolicy.

Figure2showstheexpectedvalue(totaldiscountedcost)asafunctionoftheamountdeliveredatcustomer1(andthereforealsoatcustomer2),whentheinventoryateachcustomeris7,andbothcustomersaretobevisitedinthenextvehicletour(whichistheoptimaldecisioninthegivenstate).Thefigureshowsthattheobjectivefunctionisnotunimodal,withalocalminimumat3,andaglobalminimumat7.Consequently,decidingjusthowmuchtodelivertoeachcustomermayrequiresolvinganonlinearoptimizationproblemwith

404J.-F.Cordeauetal.

Fig.2.Nonunimodalobjectivefunctionfordeterminingtheoptimaldeliveryquantity.

anonunimodalobjectivefunction.Thisisahardproblemforwhichavailablesearchmethodsmaynotconvergetoanoptimalsolution.4.6LiteraturereviewontheIRP

RatherthanprovidingacomprehensivereviewoftheIRPliterature,wedis-cussseveralresearchstreamsrepresentingavarietyofsolutionapproachesthathavebeenproposedandinvestigated.Weencouragethereadertoexaminethereferencedpapersformoreelaborateandprecisecoverage.

Afirststreamofresearchusestime-discretizedintegerprogrammingmod-elstodeterminethesetofcustomerstobevisitedinashort-termplanninghorizonaswellastheamountofproducttodelivertothem.Inordertoaccu-ratelyreflectcostsandtimerelatedaspects,theintegerlinearprogramsworkwithasetofpotentialdeliveryroutes.Fisheretal.(1982)andBelletal.(1983)pioneeredthisapproachwhentheystudiedtheIRPatAirProducts,apro-ducerofindustrialgases.Theirformulationdeterminesthedeliveryvolumestocustomers,theassignmentofcustomerstoroutes,theassignmentofvehi-cletoroutes,andthestarttimesofroutes.Thecorestructureoftheirmodelispresentedbelow,wherethevariablexirtvrepresentstheamountofproductdeliveredtocustomeri∈Nonrouter∈Rstartingattimet∈T,thevariableyrtis1ifrouterstartsattimetand0otherwise,Srthesetofcustomersvisitedonrouter,pithevalueofdeliveringaunitofproducttocustomeri,Frthefixedcostofexecutingrouter,qitalowerboundonthecumulativeamount

Ch.6.VehicleRouting405

deliveredtocustomeribytimet,andqitanupperboundonthecumulativeamountthatcanbedeliveredtocustomeribytimet:

󰀉󰀂󰀂󰀈󰀂

maximizepixirt−Fryrt

r∈Rt∈T

i∈Sr

subjectto

󰀂󰀂

xirs󰀁qit󰀓qit󰀁󰀂

i∈Sr

r∈Rs󰀁t

i∈N󰀓t∈T󰀓

xirt󰀁Qyrt󰀓

r∈R󰀓t∈T󰀓

xirt󰀂0󰀓yrt∈{0󰀓1}󰀒

Inthemodel,theperunitvalueofadeliverytoacustomerisusedtorepre-senttheeffectofdecisionsoneventsoccurringbeyondtheplanninghorizonof

themodel.Intheshort-termplanningperiodconsideredbythemodel,thereisconsiderablediscretionintheamountofproducttodeliver.Inthelongrunthisamountisdeterminedbycustomerusage.Hence,eachunitscheduledfordeliverytoacustomerwithintheplanninghorizonreducestheamounttobedeliveredinthefuture.Thisisaccountedforbysettingtheunitvaluetoanestimateofthecostofdeliveringtoacustomeratapointintimeoutsidetheplanninghorizonofthemodel.Furthermore,ratherthanexplicitlyincorpo-ratingcustomerusageratesintothemodel,lowerandupperboundsonthecumulativeamounttobedeliveredtoeachcustomerineachtimeperiodintheplanninghorizonareused.Itissimple,ofcourse,toconvertcustomerusageratesintobounds,i.e.,qit=max{0󰀓tui−Ii0}andqit=tui+Ci−Ii0.Lagrangianrelaxationwasacentraltoolindevelopinganeffectiveheuristicforsolvingtheintegerprogram.Thesizeoftheintegerprogramstobesolveddependsonthechosentimediscretizationaswellasonthesizeofsetofroutes.

CampbellandSavelsbergh(2004a)useanintegerlinearprogramwithasim-ilarstructuretodeterminewhichcustomerstovisitinthenextfewdays(eventhoughtheintegerprogramcoversseveralweeks)andtosuggestquantitiesanddeliverytimestothesecustomers.However,then,inasecondphase,theyusemodifiedinsertionheuristicstodeterminetheactualdeliveryroutesandquan-tities.Theadvantageofsuchatwo-phaseapproachisthatahigherdegreeofaccuracy(intermsoftimingofevents)canbeprovidedinthesecondphaseandotherpracticaldetails,suchasdriversshifts,canbeconsidered.Thedeliveryquantitiesandtimesspecifiedbythesolutiontotheintegerprogramaregoodfromalong-termperspective;theymayneedtobemodifiedsomewhattoalsobegoodfromashort-termperspective.Whenconstructingtheactualdeliveryroutes,CampbellandSavelsberghconsiderdeliveringmoretothecustomersthanthequantitysuggestedbytheintegerprogram(andslightlyalteringthedeliverytimeifneeded)sincethismayresultinhighervehicleutilizationandthushigherrevenues.AsinBardetal.(1998b)theirapproachisembeddedintoarollinghorizonframework.

406J.-F.Cordeauetal.

Asecondstreamofresearchisbasedonthesinglecustomeranalysispre-sentedabove.ThisapproachwaspioneeredbyDroretal.(1985)andDrorandBall(1987).Theoptimalreplenishmentdayti∗minimizingtheexpectedtotalcostforcustomeriisusedtodeterminethesetofcustomersconsideredina

¯,thenthecustomer¯days.Ifti∗󰀁tshort-termplanningproblemforthenextt

willbeincludedandwilldefinitelybevisited.Avaluectiscomputedforeachdayoftheplanningperiodtoreflecttheexpectedincreaseinfuturecostifthedeliveryismadeondaytinsteadoft∗.Ift∗󰀂T,i.e.,theoptimalreplenish-mentdayfallsoutsidetheshort-termplanningperiod,thenafuturebenefitgtcanbecomputedformakinganearlydeliverytothecustomerondaytoftheshort-termplanningperiod.Thesecomputedvaluesreflectthelongtermef-fectsofshorttermdecisions.Anintegerlinearprogramissubsequentlysolvedtoassigncustomerstoavehicleandaday,orjustaday,thatminimizesthesumofthesecostsplusthetransportationcosts.(ItwasshownbyAdelman(2004)thatthisobjectivefunctionisinfactequivalenttothatusedbyFisheretal.(1982).)Thedeliveryamounttoacustomeronaspecificdayisfixedandsettothequantityneededtofillupthestoragetankonthatday.ThisleaveseitherTSPsorVRPstobesolvedinthesecondstage.TheseideasareextendedandimprovedinTrudeauandDror(1992).ThemostrecentworkalongtheselinesisthatofBardetal.(1998a,1998b)whoworkwitharollinghorizonapproachinwhichashorttermplanningproblemisdefinedforatwo-weekperiod,butonlythedecisionsforthefirstweekareimplemented.Inaddition,satellitefa-cilitiesareconsidered,i.e.,locationsotherthanthedepotwherevehiclescanberefilled.

Athirdstreamofresearchfocusesontheasymptoticanalysisofdeliverypolicies.AnilyandFedergruen(1990,1991,1993)analyzefixedpartitionpoli-ciesfortheIRPwithanunlimitednumberofvehicles.Customerswithinthesamepartitionaredividedintoregionssoastomakethedemandofeachre-gionroughlyequaltoavehicleload.Acustomermayappearinmorethanoneregion,butthenacertainpercentofhisdemandisallocatedtoeachregion.Whenonecustomerinaregionisalsovisited,allothercustomersinthatre-gionarealsovisited.Theauthorsdeterminelowerandupperboundsontheminimumlong-runaveragecostoverallfixedpartitionpolicies,andproposeaheuristic,calledmodifiedcircularregionalpartitioning,tochooseafixedparti-tion.Usingsimilarideas,GallegoandSimchi-Levi(1990)evaluatethelong-runeffectivenessofdirectdeliveries(onecustomeroneachroute).Directship-pingisshowntobeatleast94%effectiveoverallinventoryroutingstrategieswhenevertheminimaleconomiclotsizeisatleast71%ofvehiclecapacity.Thisindicatesthatdirectshippingbecomesanundesirableandcostlypolicywhenmanycustomersrequiresignificantlylessthanavehicleload,makingmorecomplicatedroutingpoliciestheappropriatechoice.AnotheradaptationoftheseideascanbefoundinBramelandSimchi-Levi(1995)whoconsideravariantoftheIRPinwhichcustomerscanholdanunlimitedamountofin-ventory.Toobtainasolution,theytransformtheproblemintoaCapacitatedConcentratorLocationProblem(CCLP),solveit,transformthesolutionback

Ch.6.VehicleRouting407

intoasolutiontotheIRP,andheuristicallyimproveit.TheCCLPsolutionwillpartitionthecustomersintodisjointsets,whichintheIRPwillbecomethefixedpartitions.Chanetal.(1998)analyzezero-inventoryorderingpolicies,inwhichacustomer’sinventoryisreplenishedonlywhenithasbeendepleted,incombinationwithfixedpartitioningroutingpoliciesandderiveasymptoticworst-caseboundsontheirperformance.GaurandFisher(2004)consideranIRPwithtimevaryingdemand.Theyproposearandomizedheuristictofindafixedpartitionpolicywithperiodicdeliveries.Theirmethodwasimplementedforasupermarketchain.

ThefourthstreamofresearchisbasedonformulatingthestochasticIRPasaMarkovdecisionprocessandthusexplicitlyincorporatingdemandun-certainty.ThisapproachwaspioneeredbyMinkoff(1993)whoproposedadecompositionheuristictoovercomethecomputationaldifficultiescausedbylargestatespaces.Theheuristicsolvesalinearprogramtoallocatejointtrans-portationcoststoindividualcustomersandthensolvesindividualcustomersubproblems.Thevaluefunctionsofthesubproblemsareaddedtoapproxi-matethevaluefunctionoftheoriginalproblem.Themainlimitationoftheproposedapproachisthatitassumestheavailabilityofasetofdeliveryrouteswithfixeddeliveryquantitiesforthecustomersonarouteandthedispatcheronlyhastodecidewhichofthedeliveryroutestouseateachdecisionpoint.ThislimitationisremovedintheworkofKleywegtetal.(2002,2004)onap-proximatedynamicprogrammingapproachesandinthatofAdelman(2003a,2004)onprice-directedapproaches.Letstatex=(x1󰀓x2󰀓󰀒󰀒󰀒󰀓xn)representthecurrentinventoryateachcustomer,andletA(x)denotethesetofallfeasi-bledecisionswhentheprocessisinstatex.Adecisiona∈A(x)specifieswhichcustomerinventoriestoreplenish,howmuchtodeliverateachcustomerloca-tion,andhowtocombinecustomersintovehicleroutes.LetQbetheMarkovtransitionfunctionaccordingtowhichtransitionsoccur.Letg(x󰀓a)denotetheexpectedsinglestagenetrewardiftheprocessisinstatexattimetanddecisiona∈A(x)isimplemented.Theobjectiveistomaximizetheexpectedtotaldiscountedvalueoveraninfinitehorizon.LetV∗(x)denotetheoptimalexpectedvaluegiventhattheinitialstateisx.Then,foranystatex,

󰀌󰀍󰀃

V∗(x)=supg(x󰀓a)+αV∗(y)Q[dy|x󰀓a]󰀒(32)

a∈A(x)

Apolicyπ∗iscalledoptimalifVπ=V∗,whereVπrepresentsthevalue

functionofpolicyπ.SolvingaMarkovdecisionprocessinvolvescomputingtheoptimalvaluefunctionV∗andanoptimalpolicyπ∗bysolvingtheoptimalityequation(32).Thisrequiresperformingthefollowingmajorcomputationaltasks:

(1)ThecomputationoftheoptimalvaluefunctionV∗.Mostalgorithmsfor

computingV∗involvethecomputationofsuccessiveapproximationstoV∗(x)foreverystatex.Thesealgorithmsarepracticalonlyifthestatespaceissmall.

408J.-F.Cordeauetal.

(2)Theestimationoftheexpectedvalue(theintegralin(32)).Forthesto-chasticIRP,thisisahighdimensionalintegral.Conventionalnumericalintegrationmethodsarenotpracticalforthecomputationofsuchhigh-dimensionalintegrals.

(3)Themaximizationproblemontheright-handsideof(32)hastobe

solvedtodeterminetheoptimaldecisionforeachstate.Forthesto-chasticIRP,thismeanssolvingacomplexvariantoftheVRP.Kleywegt,Nori,andSavelsberghdevelopapproximationmethodstoeffi-cientlyperformthesecomputationaltasks.Furthermore,theirapproachhastheabilitytohandleafinitefleetofvehicles,whereasinotherMarkovdecisionprocessbasedapproachesitisassumedthatthereexistsaninfinitefleetofve-󰀄asfollows.First,hicles.TheoptimalvaluefunctionV∗isapproximatedbyV

thestochasticIRPisdecomposedintosubproblemsdefinedforspecificsubsetsofcustomers.EachsubproblemisalsoaMarkovdecisionprocess.Thesubsetsofcustomersdonotnecessarilypartitionthesetofcustomers,butmustcoverit.Theideaistodefineeachsubproblemsothatitprovidesanaccuraterep-resentationoftheoverallprocessasexperiencedbythesubsetofcustomers.Todoso,theparametersofeachsubproblemaredeterminedbysimulatingtheoverallstochasticIRPprocess,andbyconstructingsimulationestimatesofsubproblemparameters.Next,eachsubproblemissolvedoptimally.Finally,

󰀄(x)isdeterminedbychoosingaforanygivenstatex,theapproximatevalueV

󰀄(x)equaltothesumoftheoptimalpartitionofthecustomersandbysettingV

valuefunctionsofthesubproblemscorrespondingtothepartitionatstates

󰀄(x).Randomizedcorrespondingtox.ThepartitionischosentomaximizeV

methods,incorporatingvariancereductiontechniquestolimittherequiredsamplesize,areusedtoestimatetheexpectedvalueontheright-handsideof(32).Actiondeterminationinvolvesdecidingwhichcustomerstovisitonarouteandhowmuchtodelivertothem.Thisisachievedthroughaheuristic.Aninitialsolutionconsistingofonlydirectdeliveryroutesisconstructed.Thisisfollowedbyalocalsearchprocedurethatexaminesthebenefitofaddingacustomertoanexistingrouteandmodifyingthedeliveryquantities.UsingtheirapproachKleywegt,Nori,andSavelsberghcansolveproblemsinvolvingupto50customers.

Morerecently,Adelman(2003a,2004)proposedaprice-directedoperatingpolicybasedonasimpleeconomicmechanismtodetermineroutingandde-liverydecisionsforagiveninventorystate.SupposemanagementspecifiesavalueViforreplenishingoneunitofproductatcustomeri.Adispatchercannowevaluateafeasibledeliveryrouteasfollows.IfasetS={s1󰀓󰀒󰀒󰀒󰀓sn}ofcus-tomersisvisited,quantitiesd1󰀓󰀒󰀒󰀒󰀓dnare󰀁delivered,andacostcSisincurred.Thenthenetvalueoftherouteequalsi∈SVidi−cS.Thedispatcherhastochoosedeliveryroutessoastomaximizehistotalnetvaluewithoutstockoutsatcustomers.Thismechanismmotivatesthedispatchertoreplenishacustomeriwhosecurrentinventorylevelislow,becausethendicanbesetlarge.WhenfacedwiththeoptionofexpandingthesetSofcustomerstovisitonaroute

Ch.6.VehicleRouting409

whichdoesnotyetusethefullvehiclecapacity,thedispatcherwillconsidertheincrementalcostcS∪{k}−cSanddetermineifaquantitydkcanbereplen-ishedthatislargeenoughtojustifyit,i.e.,whetherdkVk−(cS∪{k}−cS)>0ordk󰀂(cS∪{k}−CS)/Vk.

Thekeytosuccessinsolvingmanagement’sproblemistosettheVi’sinsuchawaythatthedispatcherismotivatedto(ideally)minimizethelong-runtimeaveragereplenishmentcosts.Ifthedispatcher’stotalnetvalueisregularlypositive,thenhisperformanceexceedsmanagement’slongrangeexpectations.ManagementshoulddecreasetheVi’stomakethemconsistentwithactualper-formance.Ontheotherhand,ifthedispatcher’stotalnetvalueisregularlynegative,thentheVi’simposeunrealisticexpectationsonthedispatcherandmanagementshouldincreasethem.Ideally,managementshouldsettheVi’sequaltothelowestachievablemarginalcosts.

Startingfromadynamiccontrolmodeloftheinventoryroutingproblem,Adelman(2003b)derivesthefollowingnonlinearprogrammingrelaxation,whichcomputesalongrun“average”solutiontotheinventoryroutingprob-lem.LetzRbeadecisionvariablerepresentingtherateatwhichasubsetRofcustomersisvisitedtogether.Furthermore,letdi󰀓Rforalli∈Rbeade-cisionvariablerepresentingtheaveragequantitydeliveredtocustomerionadeliveryroutevisitingsubsetR.Thisyieldsthefollowingformulation:

󰀂

(NLP)minimize(33)CRzR

R⊆N

subjectto

󰀂

di󰀓RzR=ui󰀓

R⊆N

i∈N󰀓(34)(35)(36)(37)

󰀂

i∈R

di󰀓R󰀁Q󰀓R⊆N󰀓

di󰀓R󰀁Ci󰀓zR󰀓di󰀓R󰀂0󰀓

R⊆N󰀓i∈R󰀓R⊆N󰀓i∈R󰀒

Theobjective(33)minimizesthelongrunaveragereplenishmentcost.Con-straints(34)statethatforeachcustomeritherateatwhichquantitiesarereplenishedmustequaltherateatwhichtheyareconsumed.Constraints(35)statethatonaveragevehiclecapacityissatisfied,andconstraints(36)statethatonaveragethequantitydeliveredatcustomeriislessthanthestoragecapacity.Considerthefollowinglinearprogram

󰀂

uiVi(D)maximize(38)

i∈N

subjectto

󰀂

di󰀓RVi󰀁CR󰀓

i∈R

R⊆N󰀓(39)

410J.-F.Cordeauetal.

withdecisionvariablesVi.Adelmanshowsthatthissemi-infinitelinearpro-gramisdualtothenonlinearprograminthatthereisnodualitygapbetweenthemandaversionofcomplementaryslacknessholds.In(NLP)di󰀓Risade-cisionvariablewhilein(D)itispartoftheinput.ThedecisionvariablesViatoptimalityarethemarginalcostsassociatedwithsatisfyingconstraints(34)of(NLP).ThismeansthatatoptimalityuiViisthetotalallocatedcostrateforreplenishingcustomeriinanoptimalsolutionto(NLP).EachVicanbeinter-pretedasthepaymentmanagementtransferstothedispatcherforreplenishingoneunitofproductofcustomeri.Hence,theobjective(38)maximizestheto-taltransferrate,subjecttotheconstraint(39)thatthepaymentscanbenolargerthanthecostofanyreplenishment.NLPcanbesolvedeffectivelybymeansofcolumngenerationtechniques.

Wehaveoptedtofocusononlyafewresearchstreamswithanemphasisonmorerecentefforts.However,manyotherresearchershavecontributedtotheinventoryroutingliterature,includingFedergruenandZipkin(1984),Goldenetal.(1984),Burnsetal.(1985),Larson(1988),Chienetal.(1989),WebbandLarson(1995),Barnes-SchusterandBassok(1997),HererandRoundy(1997),ViswanathanandMathur(1997),ChristiansenandNygreen(1998a,1998b),Christiansen(1999),Reimannetal.(1999),Walleretal.(1999),ÇetinkayaandLee(2000),Lauetal.(2002),Bertazzietal.(2002),SavelsberghandSong(2005),andSongandSavelsbergh(2005).5Stochasticvehicleroutingproblems

StochasticVehicleRoutingProblems(SVRPs)areextensionsofthedeter-ministicVRPinwhichsomecomponentsarerandom.Thethreemostcommoncasesare:

(1)stochasticcustomers:customeriispresentwithprobabilitypiandab-sentwithprobability1−pi;

(2)stochasticdemands(tobecollected,say):thedemandξiofcustomeri

isarandomvariable;

(3)stochastictimes:theservicetimesiofcustomeriandthetraveltimetij

ofedge(i󰀓j)arerandomvariables.Becausesomeofthedataarerandomitisnolongerrequiredtosatisfytheconstraintsforallrealizationsoftherandomvariables,andnewfeasibilityandoptimalityconceptsarerequired.Withrespecttotheirdeterministiccounter-parts,SVRPsareconsiderablymoredifficulttosolve.Notonlyisthenotionofasolutiondifferent,butsomeofthepropertiesthatwerevalidinadetermin-isticcontextnolongerholdinthestochasticcase(see,e.g.,Droretal.,1989;Gendreauetal.,1996).

ApplicationsofSVRPariseinanumberofsettingssuchasthedeliveryofmealsonwheels(Bartholdietal.,1983)orofhomeheatingoil(Droretal.,1985),sludgedisposal(Larson,1988),forkliftroutinginwarehouses

Ch.6.VehicleRouting411

(Bertsimas,1992),moneycollectioninbankbranches(Lambertetal.,1993),andgeneralpickupanddeliveryoperations(Hvattumetal.,2006).

StochasticVRPscanbeformulatedandsolvedinthecontextofstochasticprogramming:afirststageorapriorisolutioniscomputed,therealizationsoftherandomvariablesarethendisclosedand,inasecondstage,arecourseorcorrectiveactionisappliedtothefirststagesolution.Therecourseactionusuallygeneratesacostorasavingwhichmaybetakenintoaccountwhende-signingthefirststagesolution.Toillustrate,consideraplannedvehiclerouteinanSVRPwithstochasticdemands.Becausedemandsarestochastic,thevehi-clecapacitymaybeattainedorexceededatsomecustomerjbeforetherouteiscompleted.Inthiscaseseveralpossiblerecoursepoliciesarepossible.Forex-ample,thevehiclecouldreturntothedepottounloadandresumecollectionsatcustomerj(ifthevehiclecapacitywasexceededatj)oratthesuccessorofjontheroute(ifthevehiclecapacitywasattainedexactlyatj).Anotherpolicywouldbetoplanpreventivereturntripstothedepotinthehopeofavoidinghighercostsatalaterstage(see,e.g.,LaporteandLouveaux,1990;Droretal.,1993;Yangetal.,2000).Amoreradicalpolicywouldbetore-optimizetheroutesegmentfollowingjuponarrivalatthedepot(see,e.g.,BastianandRinnooyKan,1992;Secomandi,1998;Haughton,1998,2000).Thebestchoiceofarecoursepolicydependsonthetimeatwhichinformationbe-comesavailable.Forexample,informationaboutacustomerdemandmayonlybeavailableuponarrivingatthatcustomerorwhenvisitingthepreviouscus-tomer,thusallowingforawiderrangeofrecourseactions,suchasreturningtothedepotinanticipationoffailureorpostponingthevisitofahighdemandcustomer.Anextensivediscussionofrecoursepoliciesinthecontextofavail-abilityofinformationisprovidedinDroretal.(1989).

Thereexisttwomainsolutionconceptsinstochasticprogramming.InChanceConstrainedProgramming(CCP)thefirststageproblemissolvedun-dertheconditionthattheconstraintsaresatisfiedwithsomeprobability.Forexample,onecouldimposeafailurethresholdα,i.e.,plannedvehicleroutesshouldfailwithprobabilityatmostequaltoα.Thecostoffailureistypicallydisregardedinthisapproach.StewartandGolden(1983)haveproposedthefirstCCPformulationfortheVRPwithstochasticdemands.Usingathree-indexmodeltheyshowedthatprobabilisticconstraintscouldbetransformedintoadeterministicequivalentform.Laporteetal.(1989)laterproposedasimilartransformationforatwo-indexmodel.Theinterestofsuchtransfor-mationsisthatthechanceconstrainedSVRPcanthenbesolvedusinganyofthealgorithmsavailableforthedeterministiccase.InStochasticProgrammingwithRecourse(SPR)twosetsofvariablesareused:first-stagevariableschar-acterizethesolutiongeneratedbeforetherealizationoftherandomvariables,whilesecond-stagevariablesdefinetherecourseaction.Thesolutioncostisde-finedasthesumofthecostofthefirst-stagesolutionandthatoftherecourseaction.TheaimofSPRistodesignafirst-stagesolutionofleastexpectedtotalcost.

412J.-F.Cordeauetal.

StochasticVRPsareusuallymodeledandsolvedwiththeframeworkofapriorioptimization(Bertsimasetal.,1990)orasMarkovdecisionprocesses(Droretal.,1989).Apriorioptimizationcomputesafirst-stagesolutionofleastexpectedcostunderagivenrecoursepolicy.ThemostfavoredapriorioptimizationmethodologyistheintegerL-shapedmethod(LaporteandLou-veaux1993,1998)whichbelongstothesameclassasBendersdecomposition(Benders,1962)andtheL-shapedmethodforcontinuousstochasticprogram-ming(VanSlykeandWets,1969).Whileroutereoptimizationispreferabletoapriorioptimizationfromasolutioncostpointofview,itiscomputationallymorecumbersome.Incontrast,apriorioptimizationentailssolvingonlyoneinstanceofanNP-hardproblemandproducesamorestableandpredictablesolution(Bertsimasetal.,1990).ItisalsosuperiortosolvingadeterministicVRPinstancewithexpecteddemands(Louveaux,1998).

TheintegerL-shapedmethodisessentiallyavariantofbranch-and-cut.Itoperatesonacurrentproblemobtainedbyrelaxingintegralityrequirementsandsubtoureliminationconstraints,andbyreplacingthecostofrecourseQ(x)offirst-stagesolutionxbyalowerboundθonitsvalue.Integralityandsubtoureliminationconstraintsaregraduallysatisfiedasiscommonlydoneinbranch-and-cutalgorithmsforthedeterministicVRP(see,e.g.,NaddefandRinaldi,2002)whilelowerboundingfunctionalsonθ,calledoptimalitycuts,areintro-ducedintotheproblematintegerorfractionalsolutions.ThemethodassumesthatalowerboundLonθisavailable.Inthefollowingdescriptionxijisabinaryvariableequalto1ifandonlyifedge(i󰀓j)isusedinthefirststagesolution.

Step0.Settheiterationcountν:=0andintroducetheboundingconstraint

¯ofthebestknownsolutionθ󰀂Lintothecurrentproblem.Setthevaluez

equalto∞.Atthisstage,theonlyactivenodecorrespondstotheinitialcurrentproblem.

Step1.Selectapendentnodefromthelist.Ifnoneexistsstop.

Step2.Setν:=ν+1andsolvethecurrentproblem.Let(xν󰀓θν)beanoptimal

solution.

Step3.Checkforanysubtoureliminationconstraintviolation.Ifatleastone

violationcanbeidentified,introduceasuitablenumberofsubtourelimina-tionconstraintsintothecurrentproblem,andreturntoStep2.Otherwise,

¯,fathomthecurrentnodeandreturntoStep1.ifcxν+θν󰀂z

Step4.Ifthesolutionisnotinteger,branchonafractionalvariable.Append

thecorrespondingsubproblemstothelistofpendentnodesandreturntoStep1.

¯,setz¯:=zν.Step5.ComputeQ(xν)andsetzν:=cxν+Q(xν).IfzνStep6.Ifθν󰀂Q(xν),thenfathomthecurrentnodeandreturntoStep1.

Otherwise,imposetheoptimalitycut

󰀉󰀈󰀂󰀂󰀆󰀆ν󰀇󰀇

xij−xνθ󰀂L+Qx−L(40)ij+1

11Ch.6.VehicleRouting413

intothecurrentproblemandreturntoStep2.

Theoptimalitycut(40)usesthefactthatafeasiblesolutionisfullychar-acterizedbythexijvariablesassociatedwithedgesnonincidenttothedepot.Theystatethateitherthecurrentsolutionmustbemaintained,inwhichcasethecutbecomesθ󰀂Q(xν),oranewsolutionmustbeidentified,inwhichcasethecutbecomesθ󰀂Lorlessandisthusredundant.

Markovdecisionmodelsaredefinedonastatespace.Thesystemisob-servedatvarioustransitiontimescorrespondingtomomentsatwhichanewcustomerisvisited,andnewdecisionsaretakenatthesemoments.Thestateofthesystematagiventransitiontimeisdescribedbythesetofcustomersalreadyvisitedbythevehicleandbyitscurrentload.Becausethestatespaceistypicallyverylarge,thisapproachcanonlybeappliedtorelativelysmallscaleinstances.

HeuristicsforSVRPsareadaptationsofmethodsoriginallydesignedforthedeterministiccase,whichcanberatherintricatebecauseoftheprobabilitycomputationsinvolved.Inparticular,computingtheexpectedcostofavehiclerouteisitselfcomplicatedanditmaybeadvisabletouseapproximationsifsuchcomputationsaretobeperformedrepeatedlywithinasearchprocess(see,e.g.,Gendreauetal.,1996).InwhatfollowswestudysomeparticularclassesofSVRPs.

5.1Thevehicleroutingproblemwithstochasticcustomers

Invehicleroutingproblemswithstochasticcustomerseachvertexiispresentwithprobabilitypi.Afirst-stagesolutionconsistsofasetofvehicleroutesvisitingthedepotandeachcustomerexactlyonce.Thesetofabsentcustomersisthenrevealedandthesecond-stagesolutionconsistsoffollowingthefirst-stagerouteswhileskippingtheabsentvertices.Jaillet(1985)laidthefoundationsofthislineofresearchinhisstudyoftheTravelingSalesmanProb-lemwithStochasticCustomers(TSPSC).Heproposedmathematicalmodelsandbounds,andheinvestigatedanumberofpropertiesoftheproblem.Forexample,heshowedthatthesolutionofadeterministicTSPcanbearbitrarilybadfortheTSPSC.Also,eveniftheTSPSCisdefinedinaplanewithEuclid-eandistances,anoptimalcyclemaycrossitself,contrarytowhathappensfortheTSP(Flood,1956).Jézéquel(1985)andRossiandGavioli(1987)haveproposedanumberofheuristicsfortheTSPSCbasedonadaptationsoftheClarkeandWright(1964)savingsprinciple.Bertsimas(1988)andBertsimasandHowell(1993)laterinvestigatedfurtherpropertiesoftheTSPSCandpro-posednewheuristics,namelymethodsbasedonspacefillingcurves(BartholdiandPlatzman,1982)andona2-optedgeinterchangemechanism.ThefirstexactalgorithmfortheTSPSCisanintegerL-shapedalgorithmdevelopedbyLaporteetal.(1994)andcapableofsolvinginstancesinvolvingupto50cus-tomers.AnextensionoftheTSPSC,calledthePickupandDeliveryTravelingSalesmanProblemwithStochasticCustomers(PDTSPSC),wasrecentlyin-vestigatedbyBeraldietal.(2005).Inthisproblemtherearenrequests,each

414J.-F.Cordeauetal.

consistingofapickuplocationandofadeliverylocation,butrequestionlyma-terializeswithprobabilitypi.Theauthorsshowhowtoefficientlyimplementalowcomplexityinterchangeheuristicforthisproblem.

TheVehicleRoutingProblemwithStochasticCustomers(VRPSC)hasbeenmostlystudiedinthecontextofunitdemandcustomers.AsintheTSPSC,vehiclesfollowthefirst-stagerouteswhileskippingtheabsentcustomersandreturntothedepottounloadwhentheircapacityisreached.ThisproblemwasfirststudiedbyJézéquel(1985),Jaillet(1987),andJailletandOdoni(1988).ThelatterreferencestatestwointerestingpropertiesoftheVRPSC:

(1)eveniftravelcostsaresymmetrictheoverallsolutioncostisdependent

onthedirectionoftravel;

(2)largervehiclecapacitiesmayyieldlargersolutioncosts.

Bertsimas’PhDthesis(Bertsimas,1988)isanexcellentsourceofinforma-tiononthisproblem.Itdescribesseveralproperties,boundsandheuristics.Waters(1989)hasstudiedthecaseofgeneralintegerdemandsandhascom-paredthreesimpleheuristicsforthisproblem.

5.2Thevehicleroutingproblemwithstochasticdemands

TheVehicleRoutingProblemwithStochasticDemands(VRPSD)hasbeenthemoststudiedstochasticVRP.Inthisproblemcustomerdemandsareran-domandusually(butnotalways)independent.Tillman(1969)wasprobablythefirsttostudythisprobleminamultidepotcontext.Heproposedasavingsbasedheuristicforitssolution.Thefirst,majorstudyoftheVRPSDcanbeattributedtoGoldenandStewart(1978)whopresentedachanceconstrainedmodelandtworecoursemodels.Inthefirstoftheseapenaltyproportionaltovehicleovercapacityisimposed;inthesecond,thepenaltyisproportionaltotheexpecteddemandinexcessofthevehiclecapacity.Severalbasicheuris-ticswereimplementedandtested.DrorandTrudeau(1986)developedfurtherheuristicsandshowedthatforthisproblemexpectedtravelcostdependsonthedirectionoftraveleveninthesymmetriccase.Again,Bertsimas’thesis(1988)constitutesamajorcontributiontothestudyoftheVRPSD.Itproposesseveralbounds,asymptoticresultsandpropertiesforthecasewhereξiisequalto1withprobabilitypi,andequalto0otherwise.Intheirsurveypaper,Droretal.(1989)haveshownthatsomepropertiesestablishedbyJaillet(1985,1988)andJailletandOdoni(1988)extendtotheVRPSC,namely(1)inanoptimalsolu-tionavehicleroutemayintersectitself;(2)inaEuclideanproblemcustomersarenotnecessarilyvisitedintheorderinwhichtheyappearontheconvexhullofvertices;(3)segmentsofanoptimalroutearenotnecessarilyoptimalwhenconsideredseparately.ThelatterpropertycanhaveamajorimpactonthedesignofadynamicalgorithmfortheVRPSD.

Laporteetal.(1989)proposedatwo-indexchanceconstrainedmodelfortheVRPSCaswellasanassociatedbranch-and-cutalgorithmcapableofsolv-inginstanceswithn󰀁30.Theyalsointroducedaboundedpenaltymodelin

Ch.6.VehicleRouting415

whichthecostofrecourseassociatedwithagivenroutecannotexceedapre-setproportionofthefirst-stageroutecost.ThebestexactsolutionapproachfortheVRPSDisagaintheintegerL-shapedalgorithm.Séguin(1994)andGendreauetal.(1995)proposedthefirstimplementationofthismethodforthesolutionoftheVRPSDandwereabletosolveinstancesofupto70vertices.Themostdifficultcaseariseswhentheexpectedfillingratefofthevehiclesislarge.Forexample,whenf=0󰀒3instanceswithn=70canbesolvedoptimally,butwhenf=1󰀒0instanceswithn=10canrarelybesolved.Us-ingasimilarapproach,HjorringandHolt(1999)solvedone-vehicleinstances(m=1)with0󰀒95󰀁f󰀁1󰀒05andn=90.Laporteetal.(2002)imposedanadditionalrestriction,namelythattheexpecteddemandofaroutedoesnotexceedthevehiclecapacity,andtheyalsoexploitedpropertiesofthedemandunderknowndistributions(Poissonandnormal)inthegenerationoflowerboundingfunctionalsonthecostofrecourse.Thisenabledthemtosolvelargerinstances:forPoissondemandstheysolvedinstanceswithf=0󰀒9,m=4,andn=25,orwithm=2andn=100;fornormaldemandstheysolvedinstanceswithf=0󰀒9,m=3,andn=50.

DynamicprogrammingwasappliedbySecomandi(1998)totheVRPwithstochasticdemands.Thelargestinstancesolvedtooptimalitywiththismethodcontainedonly10customers.TheauthoralsodevelopedNeuro-DynamicPro-gramming(NDP)algorithms(Secomandi,1998,2000,2003)forthesameprob-lem.Neuro-dynamicprogramming(see,e.g.,Bertsekas,1995)isaheuristicapproachusedtosolvelarge-scaledynamicprograms.Itreplacesthe“cost-to-go”computationsbyproxiesbasedonsimulationandparametricfunctionapproximations.Secomandi(2000)comparedtwoNDPimplementationsfortheVRPwithstochasticdemands:anoptimisticapproximateiterationpolicyinwhichaneuralnetworkmethodologyisusedtocomputetheapproxima-tions,andarolloutpolicyinwhichthecost-to-goisapproximatedbymeansofaheuristic.Computationalresultsshowthatthesecondofthesetwopoliciesisconsistentlyandsubstantiallysuperiortothefirst.

5.3ThevehicleroutingproblemwithstochasticcustomersanddemandsTheVRPwithstochasticcustomersanddemandscombinestwodifficultcases.ThisproblemwasfirstmentionedbyJézéquel(1985),Jaillet(1987),JailletandOdoni(1988),andwaslaterformallydefinedbyBertsimas(1992).Afirst-stagesolutionvisitingallcustomersisfirstconstructed,thesetofpresentcustomersisthenrevealedandtheirdemandbecomesknownuponthearrivalofthevehicleatthecustomer’slocation,routesarefollowedasplannedbutabsentcustomersareskippedandthevehiclereturnstothede-pottounloadwheneveritscapacitybecomesattained.BentonandRossetti(1992)proposedanalgorithmwhichperformsroutereoptimizationswheneverdemandsarerevealed.Onemajordifficultyinsolvingthisproblemliesinthecomputationoftheobjectivefunctionvalue.Recursions,bounds,asymptoticresults,andacomparisonofvariousreoptimizationpoliciesareprovidedby

416J.-F.Cordeauetal.

Bertsimas(1992).Séguin(1994)andGendreauetal.(1995)developedthefirstexactalgorithmforthisproblem,basedagainontheintegerL-shapedap-proach.Theysolvedinstancesinvolvingupto46customersandconcludedthatstochasticcustomersareafarmorecomplicatingfactorthanarestochasticde-mands.Inadifferentstudy,Gendreauetal.(1996)developedatabusearchalgorithmwhichusesanapproximationoftheobjectivefunctioncostinordertoeasecomputations.Onasetof825instanceswith6󰀁n󰀁46forwhichtheoptimumwasknown,anoptimalsolutionwasidentifiedin89.45%ofthecasesandtheaverageoptimalitygapwas0.38%.

5.4Thevehicleroutingproblemwithstochastictraveltimes

IntheVehicleRoutingProblemwithStochasticTravelTimes(VRPSTT)traveltimesontheedgesandservicetimesattheverticesarerandomvari-ables.Vehiclesfollowtheirplannedroutesandmayincurapenaltyiftheroutedurationexceedsagivendeadline.Itisnaturaltomakethispenaltypropor-tionaltotheelapsedroutedurationinexcessofthedeadline(Laporteetal.,1992).Anotherpossibilityistodefineapenaltyproportionaltotheuncollecteddemandwithinthetimelimit,asisthecaseinamoneycollectionapplicationstudiedbyLambertetal.(1993).

ThesimplestcaseoftheVRPSTTistheTravelingSalesmanProblemwithStochasticTravelTime(TSPSTT)inwhichthereisonlyonevehicle.ItwasfirststudiedbyLeipälä(1978)whocomputedtheexpectedlengthoftourswithrandomtraveltimes.AcommonversionoftheTSPSTTisthecasewheretheobjectiveistodesignatourhavingthelargestprobabilityofbeingcompletedwithinthedeadline.Kao(1978)proposedtwoheuristicsforthisproblem:onebasedondynamicprogrammingandtheotheronimplicitenumeration.Sniedovich(1981)hasshownthatdynamicprogrammingappliedtothesameproblemcanbesuboptimalbecausethemonotonicitypropertyrequiredforthismethodisnotsatisfiedintheTSPSTT.Carrawayetal.(1989)laterdevel-opedaso-calledgeneralizeddynamicprogrammingalgorithmthatovercomesthisdifficulty.KenyonandMorton(2003)haveshownthatanoptimalTSPSTTcanbeidentifiedbysolvingadeterministicTSPinwhichthetravelandservicetimesarereplacedbytheirmeanvalues.Verweijetal.(2003)havedevelopedaheuristicforthecasewhereapenaltyproportionaltoroutedurationinexcessofthedeadlineisincurred.Themethodusesasampleaverageapproximationtechniqueinwhichasampleofinstancerealizationsisdrawnandeachissolvedoptimallybymeansofadeterministictechnique.Byrepeatingthemethodwithdifferentsamplesastatisticalestimateoftheoptimalitygapcanbecomputed.Laporteetal.(1992)wereprobablythefirsttoprovideexactalgorithmsfortheVRPSTT.Theyformulatedthechanceconstrainedversionoftheproblem,andtheymodeledarecourseversionoftheprobleminwhichapenaltypropor-tionaltoroutedurationinexcessofthedeadlineisincurred.TheproblemwassolvedoptimallybymeansofanintegerL-shapedalgorithmfor10󰀁n󰀁20

Ch.6.VehicleRouting417

andtwotofivetraveltimescenarios(eachscenariocorrespondstoadiffer-enttravelspeedfortheentirenetwork).Inamorerecentstudy,KenyonandMorton(2003)haveinvestigatedpropertiesofVRPSTTsolutionsandhavedevelopedboundsontheobjectivefunctionvalue.Theyhavedevelopedaheuristicthatcombinesbranch-and-cutandMonteCarlosimulationwhich,ifruntocompletion,terminateswithasolutionvaluewithinapresetpercentageoftheoptimum.

Finally,vehicleroutingwithstochastictraveltimeisfrequentlyencounteredinpickupanddeliveryproblemssuchasthosearisingintruckloadoperations.WangandRegan(2001)haveproposedmodelsforthisclassofproblemsunderthepresenceoftimewindows.

Acknowledgements

ThisworkhasbeensupportedbytheCanadianNaturalSciencesandEn-gineeringResearchCouncilunderGrants227837-00andOGP0039682,bytheMinisterodell’UniversitàedellaRicerca(MIUR),andbytheConsiglioNazionaledelleRicerche(CNR),Italy.Thissupportisgratefullyacknowl-edged.

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