Economics at your fingertips  

A Stochastic Vehicle Routing Problem with Travel Time Uncertainty: Trade-Off Between Cost and Customer Service

Junlong Zhang (), William Lam and Bi Chen

Networks and Spatial Economics, 2013, vol. 13, issue 4, 471-496

Abstract: On-time shipment delivery is critical for just-in-time production and quick response logistics. Due to uncertainties in travel and service times, on-time arrival probability of vehicles at customer locations can not be ensured. Therefore, on-time shipment delivery is a challenging job for carriers in congested road networks. In this paper, such on-time shipment delivery problems are formulated as a stochastic vehicle routing problem with soft time windows under travel and service time uncertainties. A new stochastic programming model is proposed to minimize carrier’s total cost, while guaranteeing a minimum on-time arrival probability at each customer location. The aim of this model is to find a good trade-off between carrier’s total cost and customer service level. To solve the proposed model, an iterated tabu search heuristic algorithm was developed, incorporating a route reduction mechanism. A discrete approximation method is proposed for generating arrival time distributions of vehicles in the presence of time windows. Several numerical examples were conducted to demonstrate the applicability of the proposed model and solution algorithm. Copyright Springer Science+Business Media New York 2013

Keywords: Vehicle routing; Time window; Customer service; Stochastic programming; Tabu search; Discrete approximation (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11067/PS2

Access Statistics for this article

Networks and Spatial Economics is currently edited by Terry L. Friesz

More articles in Networks and Spatial Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-11-06
Handle: RePEc:kap:netspa:v:13:y:2013:i:4:p:471-496