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A Column Generation Approach to the Capacitated Vehicle Routing Problem with Stochastic Demands

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    Abstract

    In this article we introduce a new exact solution approach to the Capacitated Vehicle Routing Problem with Stochastic Demands (CVRPSD). In particular, we consider the case where all customer demands are distributed independently and where each customer’s demand follows a Poisson distribution. The CVRPSD can be formulated as a Set Partitioning Problem. We show that, under the above assumptions on demands, the associated column generation subproblem can be solved using a dynamic programming scheme which is similar to that used in the case of deterministic demands. To evaluate the potential of our approach we have embedded this column generation scheme in a branch-and-price algorithm. Computational experiments on a large set of test instances show promising results

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    File URL: http://www.hha.dk/bs/wp/log/L_2006_04.pdf
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    Bibliographic Info

    Paper provided by University of Aarhus, Aarhus School of Business, Department of Business Studies in its series CORAL Working Papers with number L-2006-04.

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    Length: 17 pages
    Date of creation: 01 Mar 2006
    Date of revision:
    Handle: RePEc:hhb:aarbls:2006-004

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    Postal: The Aarhus School of Business, Fuglesangs Allé 4, DK-8210 Aarhus V, Denmark
    Fax: + 45 86 15 19 43
    Web page: http://www.asb.dk/about/departments/bs.aspx
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    Related research

    Keywords: Routing; Stochastic programming; Logistics; Branch and Bound; Dynamic programming;

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