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Using safety stocks and simulation to solve the vehicle routing problem with stochastic demands

Article

Authorship
Juan, A. ; Faulin, J. ; Grasman, S. ; Riera, D. ; Marull, J. ; MENDEZ, CARLOS ALBERTO
Date
2011
Publishing House and Editing Place
Elsevier
Magazine
TRANSPORTATION RESEARCH. PART C, EMERGING TECHNOLOGIES, vol. 19 (pp. 751-765) Elsevier
Summary Information provided by the agent in SIGEVA
After introducing the Vehicle Routing Problem with Stochastic Demands (VRPSD) and some related work, this paper proposes a flexible solution methodology. The logic behind this methodology is to transform the issue of solving a given VRPSD instance into an issue of solving a small set of Capacitated Vehicle Routing Problem (CVRP) instances. Thus, our approach takes advantage of the fact that extremely efficient metaheuristics for the CVRP already exists. The CVRP instances are obtained from the ... After introducing the Vehicle Routing Problem with Stochastic Demands (VRPSD) and some related work, this paper proposes a flexible solution methodology. The logic behind this methodology is to transform the issue of solving a given VRPSD instance into an issue of solving a small set of Capacitated Vehicle Routing Problem (CVRP) instances. Thus, our approach takes advantage of the fact that extremely efficient metaheuristics for the CVRP already exists. The CVRP instances are obtained from the original VRPSD instance by assigning different values to the level of safety stocks that routed vehicles must employ to deal with unexpected demands. The methodology also makes use of Monte Carlo simulation (MCS) to obtain estimates of the reliability of each aprioristic solution – that is, the probability that no vehicle runs out of load before completing its delivering route – as well as for the expected costs associated with corrective routing actions (recourse actions) after a vehicle runs out of load before completing its route. This way, estimates for expected total costs of different routing alternatives are obtained. Finally, an extensive numerical experiment is included in the paper with the purpose of analyzing the efficiency of the described methodology under different uncertainty scenarios
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Key Words
Vehicle routing problem with stochastic demandsMetaheuristicsReliability indicesMonte Carlo simulation
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