Handling uncertainties in vehicle routing problems through data preprocessing

Matthieu Chardy and Olivier Klopfenstein

Transportation Research Part E: Logistics and Transportation Review, 2012, vol. 48, issue 3, 667-683

Abstract: This paper presents a global preprocessing methodology for handling uncertainties in operations management. Beyond theoretical considerations on solution feasibility, the methodology provides practitioners with a Monte Carlo simulation-based framework for effective risk management. The main strength of this methodology is being easily applicable to almost any decision problem. Application field of the paper is a real-life workforce management problem for which we propose several mixed integer formulations as well as dedicated solution algorithms. Extensive numerical tests on real-life instances assess the benefit from preprocessing schemes when performed as recommended by our approach, and thus prove its practical relevance.

Keywords: Risk management; Decision-aiding tool; Uncertain data; Linear programming; Vehicle routing problems (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.tre.2011.12.001

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