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The Two-Echelon Capacitated Vehicle Routing Problem: Models and Math-Based Heuristics

Author

Listed:
  • Guido Perboli

    (DAUIN, Politecnico di Torino, 10129 Torino, Italy and CIRRELT, Montréal, Québec H3T 1J4, Canada)

  • Roberto Tadei

    (DAUIN, Politecnico di Torino, 10129 Torino, Italy)

  • Daniele Vigo

    (Department of Electronics, Information, and Systems, University of Bologna, 40136 Bologna, Italy)

Abstract

Multiechelon distribution systems are quite common in supply-chain and logistics. They are used by public administrations in their transportation and traffic planning strategies, as well as by companies, to model own distribution systems. In the literature, most of the studies address issues relating to the movement of flows throughout the system from their origins to their final destinations. Another recent trend is to focus on the management of the vehicle fleets required to provide transportation among different echelons. The aim of this paper is twofold. First, it introduces the family of two-echelon vehicle routing problems (VRPs), a term that broadly covers such settings, where the delivery from one or more depots to customers is managed by routing and consolidating freight through intermediate depots. Second, it considers in detail the basic version of two-echelon VRPs, the two-echelon capacitated VRP, which is an extension of the classical VRP in which the delivery is compulsorily delivered through intermediate depots, named satellites. A mathematical model for two-echelon capacitated VRP, some valid inequalities, and two math-heuristics based on the model are presented. Computational results of up to 50 customers and four satellites show the effectiveness of the methods developed.

Suggested Citation

  • Guido Perboli & Roberto Tadei & Daniele Vigo, 2011. "The Two-Echelon Capacitated Vehicle Routing Problem: Models and Math-Based Heuristics," Transportation Science, INFORMS, vol. 45(3), pages 364-380, August.
    • Handle: RePEc:inm:ortrsc:v:45:y:2011:i:3:p:364-380
    DOI: 10.1287/trsc.1110.0368
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    References listed on IDEAS

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