A dynamic programming approach to the VRP with both limited transportation and time capacity

S. Dabia, T. van Woensel, A.G. De Kok

In this paper we consider a vehicle routing problem with both transportation and time capacity. We assume a time dependent environment, meaning that travel costs change over time. A warehouse uses a fixed fleet to fulfill customers demand. Each truck has a finite capacity and is only available for a limited time during a day. Furthermore, demand is deterministic and is assumed to be known before a truck is dispatched. Our aim is to schedule the fleet in such a way that a truck utilization is maximized and travel time is minimized. We believe that such a schedule will minimize the number of vehicles to be used. A forward time dependent multiple criteria dynamic programming (TDMCDP) formulation is used to computed the set of non-dominated routes. Finally, a numerical example is illustrated.

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