IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v249y2016i1p144-154.html
   My bibliography  Save this article

On-time delivery probabilistic models for the vehicle routing problem with stochastic demands and time windows

Author

Listed:
  • Zhang, Junlong
  • Lam, William H.K.
  • Chen, Bi Yu

Abstract

Increasing attention is given to on-time delivery of goods in the distribution and logistics industry. Due to uncertainties in customer demands, on-time deliveries cannot be ensured frequently. The vehicle capacity may be exceeded along the planned delivery route, and then the vehicle has to return to the depot for reloading of the goods. In this paper, such on-time delivery issues are formulated as a vehicle routing problem with stochastic demands and time windows. Three probabilistic models are proposed to address on-time delivery from different perspectives. The first one aims to search delivery routes with minimum expected total cost. The second one is to maximize the sum of the on-time delivery probabilities to customers. The third one seeks to minimize the expected total cost, while ensuring a given on-time delivery probability to each customer. Having noted that solutions of the proposed models are affected by the recourse policy deployed in cases of route failures, a preventive restocking policy is examined and compared with a detour-to-depot recourse policy. A numerical example indicates that the preventive restocking policy can help obtain better solutions to the proposed models and its effectiveness depends on the solution structure. It is also shown that the third model can be used to determine the minimum number of vehicles required to satisfy customers’ on-time delivery requirements.

Suggested Citation

  • Zhang, Junlong & Lam, William H.K. & Chen, Bi Yu, 2016. "On-time delivery probabilistic models for the vehicle routing problem with stochastic demands and time windows," European Journal of Operational Research, Elsevier, vol. 249(1), pages 144-154.
    • Handle: RePEc:eee:ejores:v:249:y:2016:i:1:p:144-154
    DOI: 10.1016/j.ejor.2015.08.050
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715008061
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2015.08.050?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gendreau, Michel & Laporte, Gilbert & Seguin, Rene, 1996. "Stochastic vehicle routing," European Journal of Operational Research, Elsevier, vol. 88(1), pages 3-12, January.
    2. G. B. Dantzig & J. H. Ramser, 1959. "The Truck Dispatching Problem," Management Science, INFORMS, vol. 6(1), pages 80-91, October.
    3. Nakandala, Dilupa & Samaranayake, Premaratne & Lau, H.C.W., 2013. "A fuzzy-based decision support model for monitoring on-time delivery performance: A textile industry case study," European Journal of Operational Research, Elsevier, vol. 225(3), pages 507-517.
    4. Nicola Secomandi & François Margot, 2009. "Reoptimization Approaches for the Vehicle-Routing Problem with Stochastic Demands," Operations Research, INFORMS, vol. 57(1), pages 214-230, February.
    5. Haugland, Dag & Ho, Sin C. & Laporte, Gilbert, 2007. "Designing delivery districts for the vehicle routing problem with stochastic demands," European Journal of Operational Research, Elsevier, vol. 180(3), pages 997-1010, August.
    6. Dror, Moshe, 1993. "Modeling vehicle routing with uncertain demands as a stochastic program: Properties of the corresponding solution," European Journal of Operational Research, Elsevier, vol. 64(3), pages 432-441, February.
    7. Novoa, Clara & Storer, Robert, 2009. "An approximate dynamic programming approach for the vehicle routing problem with stochastic demands," European Journal of Operational Research, Elsevier, vol. 196(2), pages 509-515, July.
    8. Pandelis, D.G. & Kyriakidis, E.G. & Dimitrakos, T.D., 2012. "Single vehicle routing problems with a predefined customer sequence, compartmentalized load and stochastic demands," European Journal of Operational Research, Elsevier, vol. 217(2), pages 324-332.
    9. Dimitris J. Bertsimas & Patrick Jaillet & Amedeo R. Odoni, 1990. "A Priori Optimization," Operations Research, INFORMS, vol. 38(6), pages 1019-1033, December.
    10. Junlong Zhang & William Lam & Bi Chen, 2013. "A Stochastic Vehicle Routing Problem with Travel Time Uncertainty: Trade-Off Between Cost and Customer Service," Networks and Spatial Economics, Springer, vol. 13(4), pages 471-496, December.
    11. Beraldi, P. & Bruni, M.E., 2009. "A probabilistic model applied to emergency service vehicle location," European Journal of Operational Research, Elsevier, vol. 196(1), pages 323-331, July.
    12. Éric Taillard & Philippe Badeau & Michel Gendreau & François Guertin & Jean-Yves Potvin, 1997. "A Tabu Search Heuristic for the Vehicle Routing Problem with Soft Time Windows," Transportation Science, INFORMS, vol. 31(2), pages 170-186, May.
    13. Marius M. Solomon, 1987. "Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints," Operations Research, INFORMS, vol. 35(2), pages 254-265, April.
    14. Stewart, William R. & Golden, Bruce L., 1983. "Stochastic vehicle routing: A comprehensive approach," European Journal of Operational Research, Elsevier, vol. 14(4), pages 371-385, December.
    15. Goodson, Justin C. & Ohlmann, Jeffrey W. & Thomas, Barrett W., 2012. "Cyclic-order neighborhoods with application to the vehicle routing problem with stochastic demand," European Journal of Operational Research, Elsevier, vol. 217(2), pages 312-323.
    16. Roberto Baldacci & Aristide Mingozzi & Roberto Roberti, 2011. "New Route Relaxation and Pricing Strategies for the Vehicle Routing Problem," Operations Research, INFORMS, vol. 59(5), pages 1269-1283, October.
    17. Nicola Secomandi, 2001. "A Rollout Policy for the Vehicle Routing Problem with Stochastic Demands," Operations Research, INFORMS, vol. 49(5), pages 796-802, October.
    18. Aykagan Ak & Alan L. Erera, 2007. "A Paired-Vehicle Recourse Strategy for the Vehicle-Routing Problem with Stochastic Demands," Transportation Science, INFORMS, vol. 41(2), pages 222-237, May.
    19. Wen-Huei Yang & Kamlesh Mathur & Ronald H. Ballou, 2000. "Stochastic Vehicle Routing Problem with Restocking," Transportation Science, INFORMS, vol. 34(1), pages 99-112, February.
    20. Leung, Stephen C.H. & Zhang, Zhenzhen & Zhang, Defu & Hua, Xian & Lim, Ming K., 2013. "A meta-heuristic algorithm for heterogeneous fleet vehicle routing problems with two-dimensional loading constraints," European Journal of Operational Research, Elsevier, vol. 225(2), pages 199-210.
    21. Moshe Dror & Gilbert Laporte & Pierre Trudeau, 1989. "Vehicle Routing with Stochastic Demands: Properties and Solution Frameworks," Transportation Science, INFORMS, vol. 23(3), pages 166-176, August.
    22. Beraldi, Patrizia & Bruni, Maria Elena & Laganà, Demetrio & Musmanno, Roberto, 2015. "The mixed capacitated general routing problem under uncertainty," European Journal of Operational Research, Elsevier, vol. 240(2), pages 382-392.
    23. Dayarian, Iman & Crainic, Teodor Gabriel & Gendreau, Michel & Rei, Walter, 2015. "A column generation approach for a multi-attribute vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 241(3), pages 888-906.
    24. Astrid S. Kenyon & David P. Morton, 2003. "Stochastic Vehicle Routing with Random Travel Times," Transportation Science, INFORMS, vol. 37(1), pages 69-82, February.
    25. Gilbert Laporte & FranÇois V. Louveaux & Luc van Hamme, 2002. "An Integer L -Shaped Algorithm for the Capacitated Vehicle Routing Problem with Stochastic Demands," Operations Research, INFORMS, vol. 50(3), pages 415-423, June.
    26. Minis, I. & Tatarakis, A., 2011. "Stochastic single vehicle routing problem with delivery and pick up and a predefined customer sequence," European Journal of Operational Research, Elsevier, vol. 213(1), pages 37-51, August.
    27. Tatarakis, A. & Minis, I., 2009. "Stochastic single vehicle routing with a predefined customer sequence and multiple depot returns," European Journal of Operational Research, Elsevier, vol. 197(2), pages 557-571, September.
    28. Martin W. P. Savelsbergh, 1992. "The Vehicle Routing Problem with Time Windows: Minimizing Route Duration," INFORMS Journal on Computing, INFORMS, vol. 4(2), pages 146-154, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yi-Kuei Lin & Cheng-Fu Huang & Yi-Chieh Liao, 2019. "Reliability of a stochastic intermodal logistics network under spoilage and time considerations," Annals of Operations Research, Springer, vol. 277(1), pages 95-118, June.
    2. Yi-Kuei Lin & Cheng-Fu Huang & Yi-Chieh Liao & Chih-Ching Yeh, 2017. "System reliability for a multistate intermodal logistics network with time windows," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1957-1969, April.
    3. Yong Wang & Jiayi Zhe & Xiuwen Wang & Yaoyao Sun & Haizhong Wang, 2022. "Collaborative Multidepot Vehicle Routing Problem with Dynamic Customer Demands and Time Windows," Sustainability, MDPI, vol. 14(11), pages 1-37, May.
    4. Kyriakidis, Epaminondas G. & Dimitrakos, Theodosis D. & Karamatsoukis, Constantinos C., 2019. "Optimal delivery of two similar products to N ordered customers with product preferences," International Journal of Production Economics, Elsevier, vol. 209(C), pages 194-204.
    5. Chen, J.J. & Wu, Q.H. & Zhang, L.L. & Wu, P.Z., 2017. "Multi-objective mean–variance–skewness model for nonconvex and stochastic optimal power flow considering wind power and load uncertainties," European Journal of Operational Research, Elsevier, vol. 263(2), pages 719-732.
    6. Jorge Oyola & Halvard Arntzen & David L. Woodruff, 2018. "The stochastic vehicle routing problem, a literature review, part I: models," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 7(3), pages 193-221, September.
    7. Jin Qin & Yong Ye & Bi-rong Cheng & Xiaobo Zhao & Linling Ni, 2017. "The Emergency Vehicle Routing Problem with Uncertain Demand under Sustainability Environments," Sustainability, MDPI, vol. 9(2), pages 1-24, February.
    8. Yang, Meng & Ni, Yaodong & Song, Qinyu, 2022. "Optimizing driver consistency in the vehicle routing problem under uncertain environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    9. Noorizadegan, Mahdi & Chen, Bo, 2018. "Vehicle routing with probabilistic capacity constraints," European Journal of Operational Research, Elsevier, vol. 270(2), pages 544-555.
    10. Epaminondas G. Kyriakidis & Theodosis D. Dimitrakos & Constantinos C. Karamatsoukis, 2020. "A Stochastic Single Vehicle Routing Problem with a Predefined Sequence of Customers and Collection of Two Similar Materials," Methodology and Computing in Applied Probability, Springer, vol. 22(4), pages 1559-1582, December.
    11. Florio, Alexandre M. & Feillet, Dominique & Hartl, Richard F., 2018. "The delivery problem: Optimizing hit rates in e-commerce deliveries," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 455-472.
    12. Carlos A. Vega-Mejía & Jairo R. Montoya-Torres & Sardar M. N. Islam, 2019. "Consideration of triple bottom line objectives for sustainability in the optimization of vehicle routing and loading operations: a systematic literature review," Annals of Operations Research, Springer, vol. 273(1), pages 311-375, February.
    13. Di Puglia Pugliese, Luigi & Ferone, Daniele & Macrina, Giusy & Festa, Paola & Guerriero, Francesca, 2023. "The crowd-shipping with penalty cost function and uncertain travel times," Omega, Elsevier, vol. 115(C).
    14. Alessio Ishizaka & Sharfuddin Ahmed Khan & Siamak Kheybari & Syed Imran Zaman, 2023. "Supplier selection in closed loop pharma supply chain: a novel BWM–GAIA framework," Annals of Operations Research, Springer, vol. 324(1), pages 13-36, May.
    15. Baozhen Yao & Qianqian Yan & Mengjie Zhang & Yunong Yang, 2017. "Improved artificial bee colony algorithm for vehicle routing problem with time windows," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-18, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jorge Oyola & Halvard Arntzen & David L. Woodruff, 2017. "The stochastic vehicle routing problem, a literature review, Part II: solution methods," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 6(4), pages 349-388, December.
    2. Jorge Oyola & Halvard Arntzen & David L. Woodruff, 2018. "The stochastic vehicle routing problem, a literature review, part I: models," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 7(3), pages 193-221, September.
    3. Bertazzi, Luca & Secomandi, Nicola, 2018. "Faster rollout search for the vehicle routing problem with stochastic demands and restocking," European Journal of Operational Research, Elsevier, vol. 270(2), pages 487-497.
    4. Pillac, Victor & Gendreau, Michel & Guéret, Christelle & Medaglia, Andrés L., 2013. "A review of dynamic vehicle routing problems," European Journal of Operational Research, Elsevier, vol. 225(1), pages 1-11.
    5. F. Hooshmand Khaligh & S.A. MirHassani, 2016. "A mathematical model for vehicle routing problem under endogenous uncertainty," International Journal of Production Research, Taylor & Francis Journals, vol. 54(2), pages 579-590, January.
    6. Luo, Zhixing & Qin, Hu & Zhang, Dezhi & Lim, Andrew, 2016. "Adaptive large neighborhood search heuristics for the vehicle routing problem with stochastic demands and weight-related cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 69-89.
    7. Prasanna Balaprakash & Mauro Birattari & Thomas Stützle & Marco Dorigo, 2015. "Estimation-based metaheuristics for the single vehicle routing problem with stochastic demands and customers," Computational Optimization and Applications, Springer, vol. 61(2), pages 463-487, June.
    8. Florio, Alexandre M. & Hartl, Richard F. & Minner, Stefan, 2020. "Optimal a priori tour and restocking policy for the single-vehicle routing problem with stochastic demands," European Journal of Operational Research, Elsevier, vol. 285(1), pages 172-182.
    9. Majid Salavati-Khoshghalb & Michel Gendreau & Ola Jabali & Walter Rei, 2019. "A Rule-Based Recourse for the Vehicle Routing Problem with Stochastic Demands," Transportation Science, INFORMS, vol. 53(5), pages 1334-1353, September.
    10. Alan L. Erera & Juan C. Morales & Martin Savelsbergh, 2010. "The Vehicle Routing Problem with Stochastic Demand and Duration Constraints," Transportation Science, INFORMS, vol. 44(4), pages 474-492, November.
    11. Briseida Sarasola & Karl Doerner & Verena Schmid & Enrique Alba, 2016. "Variable neighborhood search for the stochastic and dynamic vehicle routing problem," Annals of Operations Research, Springer, vol. 236(2), pages 425-461, January.
    12. Briseida Sarasola & Karl F. Doerner & Verena Schmid & Enrique Alba, 2016. "Variable neighborhood search for the stochastic and dynamic vehicle routing problem," Annals of Operations Research, Springer, vol. 236(2), pages 425-461, January.
    13. Justin C. Goodson & Jeffrey W. Ohlmann & Barrett W. Thomas, 2013. "Rollout Policies for Dynamic Solutions to the Multivehicle Routing Problem with Stochastic Demand and Duration Limits," Operations Research, INFORMS, vol. 61(1), pages 138-154, February.
    14. Chrysanthos E. Gounaris & Wolfram Wiesemann & Christodoulos A. Floudas, 2013. "The Robust Capacitated Vehicle Routing Problem Under Demand Uncertainty," Operations Research, INFORMS, vol. 61(3), pages 677-693, June.
    15. Dimitrakos, T.D. & Kyriakidis, E.G., 2015. "A single vehicle routing problem with pickups and deliveries, continuous random demands and predefined customer order," European Journal of Operational Research, Elsevier, vol. 244(3), pages 990-993.
    16. Justin C. Goodson & Barrett W. Thomas & Jeffrey W. Ohlmann, 2016. "Restocking-Based Rollout Policies for the Vehicle Routing Problem with Stochastic Demand and Duration Limits," Transportation Science, INFORMS, vol. 50(2), pages 591-607, May.
    17. Epaminondas G. Kyriakidis & Theodosis D. Dimitrakos & Constantinos C. Karamatsoukis, 2020. "A Stochastic Single Vehicle Routing Problem with a Predefined Sequence of Customers and Collection of Two Similar Materials," Methodology and Computing in Applied Probability, Springer, vol. 22(4), pages 1559-1582, December.
    18. Kyriakidis, Epaminondas G. & Dimitrakos, Theodosis D. & Karamatsoukis, Constantinos C., 2019. "Optimal delivery of two similar products to N ordered customers with product preferences," International Journal of Production Economics, Elsevier, vol. 209(C), pages 194-204.
    19. Nicola Secomandi & François Margot, 2009. "Reoptimization Approaches for the Vehicle-Routing Problem with Stochastic Demands," Operations Research, INFORMS, vol. 57(1), pages 214-230, February.
    20. Goodson, Justin C. & Ohlmann, Jeffrey W. & Thomas, Barrett W., 2012. "Cyclic-order neighborhoods with application to the vehicle routing problem with stochastic demand," European Journal of Operational Research, Elsevier, vol. 217(2), pages 312-323.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:249:y:2016:i:1:p:144-154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.