A note on determining operating strategies for probabilistic vehicle routing

James R. Yee and Bruce L. Golden

Naval Research Logistics Quarterly, 1980, vol. 27, issue 1, 159-163

Abstract: The stochastic vehicle routing problem is a problem of current importance and research interest. Applications include schoolbus routing, municipal waste collection, subscription bus scheduling, daily delivery of dairy goods, and a host of related transportation and distribution activities. In this paper, we assume that routes for vehicles have already been generated and we focus on determining operating strategies. That is, under what conditions should a driver return to the central depot in order to replenish his supply? We present a dynamic programming recursion which addresses this question and we show that the optimal policy is of a rather simple form. Finally, an algorithm and example illustrate the policy.

Date: 1980
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