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Conference Paper
The Vehicle Routing Problem in a Hybrid Hub-and-spoke Network with Demand Uncertainty
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- Authors
- Jiyoung Choi, Chungmok Lee, Sungsoo Park
- Issue Date
- 2013-09
- Citation
- International Conference on Logistics and Maritime Systems (LOGMS) 2013, pp.1-8
- Language
- English
- Type
- Conference Paper
- Abstract
- In this article, we study the vehicle routing problem in a hybrid hub-and-spoke network with demand uncertainty. The problem decides both the transportation routes and the number and types of vehicles to be deployed to minimize the sum of costs to transport all quantities in a hybrid hub-and-spoke network which allows direct transportation between spokes. In this problem, daily changes in quantities are reflected with a finite number of possible scenarios and regularly scheduled vehicles and temporarily scheduled vehicles are considered to meet the demand variation. We propose an extended formulation which yields a strong LP relaxation bound by introducing a set of feasible direct route patterns and develop an algorithm which incorporates variable fixing and column generation procedure. Finally, we present computational results using the real-life data of Korea Post.
- KSP Keywords
- Demand Variation, Direct route, Extended formulation, Hub-and-spoke network, LP relaxation, Real-life data, Vehicle routing problem(VRP), column generation, computational results, demand uncertainty