# 4 Vehicle Routing 1

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    Material Handling & Transportation

    Issues

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    Shared Transportation Capacity

    Large shipments reduce transportationcosts but increase inventory costs

    EOQ trades off these two costs

    Reduce shipment size withoutincreasing transportation costs?

    Combine shipments on one vehicle

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    TL vs LTL

    Inventory

    Transport

    Transport

    Inventory

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    Shared Loads

    Inventory

    Transport

    Transport?

    Inventory

    ?

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    Issues

    Design Routes that

    Minimize the transportation cost

    Respect the capacity of the vehicle

    This may require several routes

    Consider inventory holding costs

    This may require more frequent visits

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    Vehicle Routing Problem

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    Classical VRP

    ncustomers must be served from a singledepot utilizing vehicles with capacity Qfor

    delivering goods Each customer requires a quantity qi Qof

    goods

    Customer orders cannot be split

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    Graphical Representation

    Depot

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    Additional Features

    Depots Multiple locations

    Vehicles Multiple vehicle

    types and capacities

    Release, maximumand down times

    Customers Time windows (soft

    or hard)

    Accessibilityrestrictions

    Priority Pickup and delivery

    Routes Maximum time Link costs

    Objective Functions Minimize total

    traveled distance Minimize total

    traveled time Minimize number of

    vehicles

    Maximize quality ofservice

    Multiple objectivefunctions

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    Vehicle Routing & Scheduling

    Model

    Problem Variety Pure Pickup or Delivery Problems

    Mixed pickups and deliveries Pickup-Delivery Problems

    Backhauls

    Complications

    Simplest Model: TSP

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    Vehicle Routing

    Find best vehicle route(s) to serve a set of ordersfrom customers.

    Best route may be

    minimum cost, minimum distance, or

    minimum travel time.

    Orders may be Delivery from depot to customer.

    Pickup at customer and return to depot.

    Pickup at one place and deliver to another place.

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    Model

    Nodes: physical locations

    Depot.

    Customers.

    Arcs or Links

    Transportation links.

    Number on each arc

    represents cost, distance,or travel time.

    depot

    1

    4

    6

    6

    8

    5

    4

    4

    8

    3

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    Pure Pickup or Delivery

    Delivery: Load vehicle at depot. Design route todeliver to many customers (destinations).

    Pickup: Design route to pickup orders from

    many customers and deliver to depot.

    Examples:

    UPS, FedEx, etc.

    Manufacturers & carriers.

    Carpools, school buses, etc.

    depot

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    TSP & VRP

    TSP: Travelling Salesman Problem One vehicle can deliver all orders.

    VRP: Vehicle Routing Problem

    More than one vehicle is required to serve all orders.

    VRP

    depot

    TSP

    depot

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    Mixed Pickup & Delivery

    Interspersed

    depot

    Pickup

    Delivery

    depot

    Not Interspersed

    depot

    Separate routes

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    Interspersed Routes

    depot

    Pickup

    Delivery

    For clockwise trip:

    Load at depot

    Stop 1: Deliver A

    Stop 2: Pickup B

    Stop 3: Deliver C

    Stop4: Deliver D

    etc.

    A

    B

    ED

    C

    F

    G

    H

    I

    J

    K

    L

    ACDFIJK

    CDFIJK

    BCDFIJK

    BDFIJK Delivering C requires moving B

    BFIJK Delivering D requires moving B

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    Pickup-Delivery Problems

    Pickup at one or more origin and delivery to oneor more destinations.

    Often long haul trips.

    depot

    A

    B

    C

    Pickup

    Delivery

    A

    B

    C

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    Intersperse Pickups and Deliveries?

    Can pickups and deliveries be interspersed?

    depot

    A

    B

    C

    Pickup

    Delivery

    A

    B

    C

    Interspersed

    depot

    A

    B

    C

    A

    B

    C

    Not Interspersed

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    Backhauls

    If vehicle does not end at depot, should it returnempty (deadhead) or find a backhaul?

    How far out of the way should it look for a backhaul?

    Pickup

    Delivery

    depot

    A

    B

    CA

    B

    C

    DD

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    Backhauls

    Compare profit from deadheading and carryingbackhaul.

    Pickup

    Delivery

    depot

    A

    B

    CA

    B

    C

    D D

    Empty Return

    Backhaul

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    More Complications

    Time windows for pickup and delivery. Hard vs. soft

    Compatibility

    Vehicles and customers. Vehicles and orders.

    Order types.

    Drivers and vehicles.

    Driver rules (DOT)

    Max drive duration = 10 hrs. before 8 hr. break.

    Max work duration = 15 hrs. before 8 hr break.

    Max trip duration = 144 hrs.

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    Simple Models

    Homogeneous vehicles.

    One capacity (weight or volume).

    Minimize distance.

    No time windows or one time window percustomer.

    No compatibility constraints.

    No DOT rules.

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    Simplest Model: TSP

    Given a depot and a set of n customers, find atour (route) starting and ending at the depot,that visits each customer once and is of minimumlength.

    One vehicle.

    No capacities.

    Minimize distance.

    No time windows.

    No compatibility constraints.

    No DOT rules.

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    Multiple Routes

    Capacitated VRP: vehicles have capacities. Weight, Cubic feet, Floor space, Value.

    Deadlines force short routes.

    Pickup at end of day. Deliver in early morning.

    Time windows

    Pickup. Delivery.

    Hard or Soft.

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    Multiple Route Solution Strategies

    Find feasible routes.

    Cluster first, route second.

    Cluster orders to satisfy capacities.

    Create one route per cluster. (TSP for each cluster)

    Route first, cluster second.

    Create one route (TSP).

    Break route into pieces satisfying capacities.

    Build multiple routes simultaneously.

    Improve routes iteratively.

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    Heuristics that GrowFragments Strip Heuristic

    Nearest neighbor

    Double-endednearest neighbor

    Heuristics that GrowTours Nearest addition

    Farthest addition

    Random addition

    Heuristics Based onTrees Minimum spanning

    tree

    Christofides heuristic

    Fast recursivepartitioning

    Construction Heuristics

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    The Strip Heuristic

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

    The Strip Heuristic Partition the region into narrow strips Routing in each strip is easy ~ 1-Dimensional Paste the routes together

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    Sweep Algorithm

    Draw a ray starting from the depot.

    Sweep clockwise (or counter-clockwise) and addcustomers to the route as encountered.

    Start a new route when vehicle is full.

    Re-optimize each route (solve a TSP forcustomers in each route).

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    1. Randomly select a starting node

    2. Add to the last node the closest node until no morenodes are available

    3. Connect the last node with the first node

    O(n2) running time

    Nearest Neighbor

    Double-ended Nearest Neighbor

    Conceptually the same as nearest neighbor heuristic

    The fragment is allowed to grow from both ends

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    Nearest Neighbor

    Add nearest customer to end of the route.

    depot

    1

    depot

    2

    depot

    3

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    Nearest Neighbor

    Add nearest customer to end of the route.

    depot

    4

    depot

    5

    depot

    6

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    Nearest Neighbor

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Neighbor Algorithm

    depot

    Suppose each vehicle capacity = 4 customers

    depot

    First route

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    Third routedepot

    Nearest Neighbor Algorithm

    Suppose each vehicle capacity = 4 customers

    depot

    Second route

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    1. Select a node and thenode nearest to it andbuild a two-node tour

    2. Insert in the tour theclosest node yuntil nomore nodes areavailable

    O(n2) running time

    x

    y

    z

    Minimize d(x,y) + d(y,z)d(x,z)

    Nearest Insertion

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    Nearest Insertion

    Insert customer closest to the route in the bestsequence.

    depot

    1

    depot

    2

    depot

    3

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    Nearest Insertion

    Insert customer closest to the route in the bestsequence.

    depot

    4

    depot

    5

    depot

    6

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

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    x

    x

    x

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    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

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    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

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    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

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    x

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    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

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    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

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    Nearest Insertion

    x

    x

    x

    x

    x

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    x

    x

    x

    x

    xx

    x

    x

    x

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    1. Select a node and the node farthest toit and build a two-node tour

    2. Insert in the tour the farthest node yuntil no more nodes are available

    O(n2) running time

    Farthest Insertion

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    This heuristic adds points to the tour ina random order

    Random Insertion

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    Minimum Spanning Tree

    Construct a minimum spanning tree

    Traverse the tree to build a tour byeliminating edges from vertices with degree

    three and adding edges to vertices withdegree one

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    Build a minimum spanning tree on theedges between customers

    Double the tree to get an Eulerian Tour(visits everyone perhaps several times andreturns to the start)

    Short cut the Eulerian Tour to get aHamilton Tour (Traveling Salesman Tour)

    Minimum Spanning Tree

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    Is Easy to construct

    Use the Greedy Algorithm

    Add edges in increasing order of length

    Discard any that create a cycle

    Is a Lower bound on the TSP

    Drop one edge from the TSP and you

    have a spanning tree It must be at least as long as the minimum

    spanning tree

    Minimum Spanning Tree

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    x

    x

    x

    x

    x

    xx

    x

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    x

    x

    x x

    x

    x

    x

    Minimum Spanning Tree

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    Double the Spanning Tree

    Duplicate each edge in the Spanning Tree

    The resulting graph is connected

    The degree at every node must be even

    Thats an Eulerian Graph (you can start at a

    city, walk on each edge exactly once and

    return to where you started) Its no more than twice the length of the

    shortest TSP

    Minimum Spanning Tree

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    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    x x

    x

    x

    x1

    2

    3

    45 6

    7

    8

    910

    111213

    14

    15

    16

    17

    1819

    20

    21

    22

    23

    2425

    2627

    28

    29

    30

    Minimum Spanning Tree

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    Short Cut the Eulerian Tour

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    x x

    x

    x

    x1

    2

    3

    45 6

    7

    8

    910

    111213

    14

    15

    16

    17

    1819

    20

    21

    22

    23

    2425

    2627

    28

    29

    30

    Minimum Spanning Tree

    S

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    Short Cut the Eulerian Tour

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    x x

    x

    x

    x1

    2

    3

    45 6

    7

    8

    910

    111213

    14

    15

    16

    17

    1819

    20

    21

    22

    23

    2425

    2627

    28

    29

    30

    Minimum Spanning Tree

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    Christofides Heuristic

    Construct an MST[Min. Spanning Tree]

    Construct a matching of all vertices with odd

    degree Combine the matching edges with the MST

    edges, so that now all vertices have an evendegree

    Compute an Eulerian tour through the graph

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    Clarke G. and J. W. Wright (1964) Scheduling of vehicles from a central depot to

    a number of delivery points, Operations Research, vol. 12, pp. 568-581.

    Start with an initial solution where each customer is serviced

    individually from the depot

    1

    2

    3

    0

    Savings Method

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    Savings Calculation

    i j

    0

    c0i cj0

    cij

    sij= ci0 + c0j- cij

    Savings Method

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    Procedure

    1. Compute savings sij for all pairs2. Choose the pair with the largest savings

    and join customers in a new route iffeasible.

    3. If all positive savings have been examined,stop. Otherwise go to 2.

    Savings Method

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    Savings Method

    Start with separate one stop routes from depot toeach customer.

    Calculate all savings for joining two customers

    and eliminating a trip back to the depot. Sij= Ci0 + C0j- Cij

    Order savings from largest to smallest.

    Form route by linking customers according tosavings.

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    Savings Method

    depot

    1 2 3

    4

    Remove Add

    depot

    1 23

    4

    Savings = S12 = C10+C02 -C12

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    Savings Method

    5

    depot

    1 2

    3

    4

    6

    5

    depot

    S121 2

    3

    4

    6

    depot

    S13

    1 2

    3

    4

    6

    5

    5

    S14

    depot

    1 24

    6

    3

    depot

    S15

    1 24

    6

    3

    5

    depot

    S16

    1 24

    6

    3

    5

    Small savings

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    Savings Method

    5 5

    depot

    S241 2

    3

    4

    6

    depot

    S25

    1 2

    3

    4

    6

    5

    5

    depot

    S26

    1 24

    6

    3

    Large savings

    depot

    1 2

    3

    4

    6

    S23

    Large savings

    3

    5

    depot

    S34

    1 24

    6depot

    S35

    1 24

    6

    3

    5

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    Savings Method

    depot depot depot

    depot

    S451 2

    3

    4 5

    6

    1 2

    3

    45

    6

    S46

    S56

    1 2

    3

    4

    6

    5

    1 24

    5

    6

    3

    Large savingsS36

    In general, with n customers thereare n(n-1)/2 savings to calculate.

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    Savings Method

    Order savings from largest to smallest. S35

    S34

    S45

    S36

    S56

    S23

    S46

    S24

    S25

    S12

    S26

    S13

    etc.

    h d

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    Savings Method

    depot

    1 2

    3

    4 5

    6

    Form route by linking customers according tosavings.

    S35:link 3&5

    0-3-5-0

    depot

    1 2

    3

    45

    6

    S34:link 3&4 (keep 3-5)

    0-4-3-5-0

    S i h d

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    Savings Method

    Form route by linking customers according tosavings. S35 0-3-5-0

    S34 0-4-3-5-0

    S45

    S36

    S56

    S23

    S46

    S24

    S25

    S12

    S26

    S13

    etc.

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    S i M th d

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    Savings Method

    depot

    1 2

    3

    4

    6

    5

    S23: skip

    depot

    S46: skip

    1 2

    3

    4

    6

    5

    depot

    1 2

    3

    4

    6

    5

    S24:link 2&4

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    S i M th d

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    Savings Method

    Form route by linking customers according tosavings. S35 0-3-5-0

    S34 0-4-3-5-0

    S45 skip

    S36 skip

    S56 0-4-3-5-6-0

    S23 skip

    S46 skip

    S24 0-2-4-3-5-6-0

    S25 skip

    S12 0-1-2-4-3-5-6-0

    Diff t A h

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    Different Approaches

    Route First - Cluster Second

    Build a TSP tour

    Partition it to meet capacity

    Cluster First - Route Second

    Decide who gets served by eachroute

    Then build the routes

    R t Fi t

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    Route First

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

    6

    4

    55

    5

    5

    3

    26

    4 6

    3

    352

    Vehicle Cap: 15

    Cl t Fi t

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    Cluster First

    Sweep Heuristic

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

    6

    4

    55

    5

    5

    3

    26

    4 6

    3

    352

    Vehicle Cap: 15

    Cluster Algorithms

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    Cluster Algorithms

    Select certain customers as seed points forroutes.

    Farthest from depot.

    Highest priority.

    Equally spaced.

    Grow routes starting at seeds. Add customers:

    Based on nearest neighbor or nearest insertion

    Based on savings.

    Based on minimum angle.

    Re-optimize each route (solve a TSP forcustomers in each route).

    Cluster with Nearest Neighbor

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    Cluster with Nearest Neighbor

    depot

    Suppose each vehicle capacity = 4 customers

    Select 3 seeds

    depot

    Add nearestneighbor

    Cluster with Nearest Neighbor

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    Cluster with Nearest Neighbor

    depot

    Suppose each vehicle capacity = 4 customers

    Add nearestneighbor

    depot

    Add nearestneighbor

    Cluster with Minimum Angle

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    Cluster with Minimum Angle

    depot

    Suppose each vehicle capacity = 4 customers

    Select 3 seeds

    depot

    Add customers withminimum angle

    Cluster with Minimum Angle

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    Cluster with Minimum Angle

    depot

    Suppose each vehicle capacity = 4 customers

    Add customers withminimum angle

    depot

    Add customers withminimum angle

    Improvement Heuristics

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    Improvement Heuristics

    depot

    Starting routes

    depot

    Improved routes

    Intra-route

    improvementInter-route

    improvement

    VRP Route Improvement Heuristics

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    VRP Route Improvement Heuristics

    Start with a feasible route.

    Make changes to improve route. Exchange heuristics within a route

    Switch position of one customer in the route. Switch 2 arcs in a route. Switch 3 arcs in a route.

    Exchange heuristics between routes. Move a customer from one route to another. Switch two customers between routes.

    Local search methods. Simulated Annealing. Tabu Search. Genetic Algorithms.

    K opt Exchange

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    K-opt Exchange

    Replace k arcs in a given route by k new arcs sothe result is a route with lower cost.

    2-opt: Replace 4-5 and 3-6 by 4-3 and 5-6.

    depot

    1 2

    3

    45

    6

    Original route

    depot

    1 2

    3

    4 5

    6

    Improved route

    2 opt Exchange

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    2-Opt

    x

    x

    x

    x

    x

    xx

    x

    x

    x

    x

    xx

    x

    x

    x

    2-opt Exchange

    3 opt Exchange

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    3-opt Exchange

    3-opt: Replace 2-3, 5-4 and 4-6 by 2-4, 4-3 and5-6.

    depot

    1 2

    3

    45

    6

    Original route

    depot

    1 2

    3

    4

    5

    6

    Improved route

    Improvement Heuristics

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    Improvement Heuristics

    depot

    Cluster with Nearest Neighbor

    depot

    Optimized routesStarting routes