The Demand Weighted Vehicle Routing Problem

European Journal of Operational Research, Volume 262, Issue 1, 1 October 2017, Pages 151-162

University of Cincinnati Lindner College of Business Research Paper

Posted: 6 Nov 2017

See all articles by Jeffrey Camm

Jeffrey Camm

Independent

Mike Magazine

University of Cincinnati - Department of Business Analytics

Kipp Martin

University of Chicago - Booth School of Business

Date Written: October 1, 2017

Abstract

In this paper, we present an exact method for the demand weighted vehicle routing problem. This problem arises when the objective is to minimize the distance traveled by the vehicles weighted by the number of passengers on the routes. The resulting model is a non-convex, mixed-integer quadratic program and we show how to reformulate this problem as a linear integer program with auxiliary variables. The reformulation provides very tight lower bounds on the optimal solution value and little enumeration is required. However, the reformulated model is very large and therefore, it is solved with a branch, price and cut algorithm. Using COIN-OR software, we provide computational results with actual data from a large urban university.

Keywords: Vehicle routing, Column generation, Dynamic programming, Integer programming, COIN-OR

Suggested Citation

Camm, Jeffrey and Magazine, Mike and Martin, Kipp, The Demand Weighted Vehicle Routing Problem (October 1, 2017). European Journal of Operational Research, Volume 262, Issue 1, 1 October 2017, Pages 151-162; University of Cincinnati Lindner College of Business Research Paper. Available at SSRN: https://ssrn.com/abstract=3064292

Jeffrey Camm (Contact Author)

Independent

No Address Available

Mike Magazine

University of Cincinnati - Department of Business Analytics ( email )

606 Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 210211
Cincinnati, OH 45221-0211
United States

Kipp Martin

University of Chicago - Booth School of Business ( email )

5807 South Woodlawn Avenue
Chicago, IL 60637
United States

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