A model for solving the dynamic vehicle dispatching problem with customer uncertainty and time dependent link travel time

Abstract

In a real world case scenario, customer demands are requested at any time of the day requiring services that are not known in advance such as delivery or repairing equipment. This is called Dynamic Vehicle Routing (DVR) with customer uncertainty environment. The link travel time for the roadway network varies with time as traffic fluctuates adding an additional component to the dynamic environment. This paper presents a model for solving the DVR problem while combining these two dynamic aspects (customer uncertainty and link travel time). The proposed model employs Greedy, Insertion, and Ant Colony Optimization algorithms. The Greedy algorithm is utilized for constructing new routes with existing customers, and the remaining two, algorithms are employed for rerouting as new customer demands appear. A real world application is presented to simulate vehicle routing in a dynamic environment for the city of Taipei, Taiwan. The simulation shows that the model can successfully plan vehicle routes to satisfy all customer demands and help managers in the decision making process.