Operational Implications of Time Window Relaxation in Vehicle Routing Problems

Ahmet Çağlar Saygılı () and Halim Kazan ()
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Ahmet Çağlar Saygılı: İstanbul University, Faculty of Economics, Department of Business Administration, İstanbul, Türkiye
Halim Kazan: İstanbul University, Faculty of Economics, Department of Business Administration, İstanbul, Türkiye

EKOIST Journal of Econometrics and Statistics, 2024, vol. 0, issue 41, 54-81

Abstract: The Vehicle Routing Problem with Time Windows (VRPTW) poses a significant challenge in logistics, requiring vehicles to meet the objective of minimising costs—such as distance travelled and total travel time—while adhering to specified delivery time constraints and vehicle capacities. This study investigates the implications of relaxing time window constraints by transitioning from VRPTWinstancestostandard Vehicle Routing Problem (VRP) instances. Our findings highlight notable differences between VRP and VRPTW configurations, particularly in total route length and consistency of route metrics. Removal of time window constraints generally resulted in shorter and more uniform route lengths, indicating operational benefits under certain conditions. However,ourcomparisonsalsorevealedsubstantialvariability inroutestructures across datasets, emphasising the cost implications of adhering to strict time windows. This study underscores the critical balance logistics firms must strike between operational efficiency and customer satisfaction when navigating the complexities of VRPTW. This research provides a foundation for future investigations into optimizing route planning under varying logistical constraints, with potential implications for enhanced f lexibility and reduced operational costs despite dynamic delivery requirements. We used a state-of-the-art heuristic solver to solve instances from standard benchmark datasets heavily used for VRPTW literature.

Keywords: logistics; minimizing costs; delivery time constraints; operational efficiency; route planning (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ist:ekoist:v:0:y:2024:i:41:p:54-81

DOI: 10.26650/ekoist.2024.41.1490601

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