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On the heterogeneous vehicle routing problem under demand uncertainty

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Noorizadegan, Mahdi, Galli, Laura and Chen, Bo (2012) On the heterogeneous vehicle routing problem under demand uncertainty. In: 21st International Symposium on Mathematical Programming, Berllin, Germany, 19-24 Aug 2012 pp. 1-25. (Unpublished)

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Abstract

In this paper we study the heterogeneous vehicle routing problem under demand uncertainty, on which there has been little research to our knowledge. The focus of the paper is to provide a strong formulation that
also easily allows tractable robust and chance-constrained counterparts. To this end, we propose a basic Miller-Tucker-Zemlin (MTZ) formulation with
the main advantage that uncertainty is restricted to the right-hand side of the constraints. This leads to compact and tractable counterparts of demand uncertainty. On the other hand, since the MTZ formulation is well known to
provide a rather weak linear programming relaxation, we propose to strengthen the initial formulation with valid inequalities and lifting techniques and, furthermore, to dynamically add cutting planes that successively reduce the polyhedral region using a branch-and-cut algorithm. We complete our study with extensive computational analysis with different performance measures on different classes of instances taken from the literature. In addition, using simulation, we conduct a scenario-based risk level analysis for both cases where either unmet demand is allowed or not.

Item Type: Conference Item (Paper)
Subjects: Q Science > QA Mathematics
Divisions: Faculty of Social Sciences > Warwick Business School > Operational Research & Management Sciences
Library of Congress Subject Headings (LCSH): Vehicle routing problem
Official Date: 2012
Dates:
DateEvent
2012Completion
Page Range: pp. 1-25
Status: Not Peer Reviewed
Publication Status: Unpublished
Conference Paper Type: Paper
Title of Event: 21st International Symposium on Mathematical Programming
Type of Event: Other
Location of Event: Berllin, Germany
Date(s) of Event: 19-24 Aug 2012

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