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Dynamic routing for milk-run tours with time windows in stochastic time-dependent networks

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  • Güner, Ali R.
  • Murat, Alper
  • Chinnam, Ratna Babu

Abstract

We consider finding static yet robust recurring milk-run tours while dynamically routing the vehicle between site visits. The network arcs experience recurrent congestion, leading to stochastic and time-dependent travel times. Based on vehicle location, time of day, and current and projected network congestion states, we generate dynamic routing policies (DRP) for every pair of sites using stochastic dynamic programming (SDP). By simulating DRP we find travel time distributions for each pair of sites which is used to build the robust tour using another SDP formulation. Results are very promising when the algorithms are tested in a simulated network using historical traffic data.

Suggested Citation

  • Güner, Ali R. & Murat, Alper & Chinnam, Ratna Babu, 2017. "Dynamic routing for milk-run tours with time windows in stochastic time-dependent networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 251-267.
  • Handle: RePEc:eee:transe:v:97:y:2017:i:c:p:251-267
    DOI: 10.1016/j.tre.2016.10.014
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    2. Shen, Liang & Shao, Hu & Wu, Ting & Fainman, Emily Zhu & Lam, William H.K., 2020. "Finding the reliable shortest path with correlated link travel times in signalized traffic networks under uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    3. Zhang, Jian & Woensel, Tom Van, 2023. "Dynamic vehicle routing with random requests: A literature review," International Journal of Production Economics, Elsevier, vol. 256(C).
    4. Chan, Chi Kin & Zhou, Yan & Wong, Kar Hung, 2018. "A dynamic equilibrium model of the oligopolistic closed-loop supply chain network under uncertain and time-dependent demands," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 325-354.

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