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A Pricing Algorithm for the Vehicle Routing Problem with Soft Time Windows

In: Innovations in Distribution Logistics

Author

Listed:
  • Federico Liberatore

    (Università degli Studi di Milano)

  • Giovanni Righini

    (Università degli Studi di Milano)

  • Matteo Salani

    (École Politechnique Fédérale de Lausanne)

Abstract

Summary The Vehicle Routing Problem with Soft Time Windows consists in computing a minimum cost set of routes for a fleet of vehicles of limited capacity that must visit a given set of customers with known demand, with the additional feature that each customer expresses a preference about the time at which the visit should occur. If a vehicle serves the customer out of its specified time window, an additional cost is incurred. Here we consider the case with penalties linearly depending on the time windows violation. We present an exact optimization algorithm for the pricing problem which arises when the vehicle routing problem with soft time windows is solved by column generation. The algorithm exploits bi-directional and bounded dynamic programming with decremental state space relaxation.

Suggested Citation

  • Federico Liberatore & Giovanni Righini & Matteo Salani, 2009. "A Pricing Algorithm for the Vehicle Routing Problem with Soft Time Windows," Lecture Notes in Economics and Mathematical Systems, in: Jo A.E.E. Nunen & M. Grazia Speranza & Luca Bertazzi (ed.), Innovations in Distribution Logistics, chapter 13, pages 251-266, Springer.
    • Handle: RePEc:spr:lnechp:978-3-540-92944-4_13
    DOI: 10.1007/978-3-540-92944-4_13
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