6533b86cfe1ef96bd12c8a58

RESEARCH PRODUCT

Upper and lower bounds for the vehicle-routing problem with private fleet and common carrier

Timo GschwindMichael SchneiderDominik Goeke

subject

Mathematical optimizationbusiness.industryApplied Mathematicsmedia_common.quotation_subject0211 other engineering and technologies021107 urban & regional planning0102 computer and information sciences02 engineering and technology01 natural sciencesUpper and lower boundsOutsourcing010201 computation theory & mathematicsHomogeneousVehicle routing problemDiscrete Mathematics and CombinatoricsLarge neighborhood searchRelevance (information retrieval)Quality (business)Common carrierbusinessMathematicsmedia_common

description

Abstract The vehicle-routing problem with private fleet and common carrier (VRPPC) extends the capacitated VRP by considering the option of outsourcing customers to subcontractors at a customer-dependent cost instead of serving them with the private fleet. The VRPPC has important applications in small package shipping and manufacturing, but despite its relevance, no exact solution approach has been introduced so far. We propose a branch-price-and-cut algorithm that is able to solve small to medium-sized instances and provides tight lower bounds for larger instances from the literature. In addition, we develop a large neighborhood search that shows a decent solution quality and competitive run-times compared to the state-of-the-art on instances with homogeneous as well as heterogeneous vehicle fleet. In addition, several new best known solutions are found.

https://doi.org/10.1016/j.dam.2018.10.015