A bi-objective model to increase security and reduce travel costs in the cash-in-transit sector

Luca Talarico, Kenneth Sörensen and Johan Springael

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: In this paper, we present a variant of the vehicle routing problem (VRP) to increase security in the cash-in-transit sector. A specific index is used to quantify the exposure of a vehicle to the risk of being robbed along its route. In addition, the problem is subjected to a traditional capacity constraint, according to which a maximum amount of valuables can be transported inside the vehicle. This constraint might be imposed, for example, by insurance companies. A bi-objective formulation, aimed at reducing both the risk and the travel cost, is proposed. The objectives are conflicting since higher risk exposures allow a reduction of the travel cost needed to visit and collect valuables from all customers. A mathematical model of the problem is proposed and solved by using a progressive multi-objective metaheuristic. Realistic instances are also generated considering the geographical coordinates of several customers (e.g., stores, banks, shopping centres) located in Belgium. The proposed solution approach is tuned and tested both on these realistic instances and on standard benchmark instances for the capacitated vehicle routing problem.

Keywords: Metaheuristic; Multi-objective optimization; Combinatorial optimization; Cash-in-transit; Security (search for similar items in EconPapers)
Pages: 19 pages
Date: 2014-11
New Economics Papers: this item is included in nep-tre
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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:2014026

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