Is Waiting Worth It? The Value of Delaying Time Window Assignment in Vehicle Routing Problems

46 Pages Posted: 19 Dec 2024 Last revised: 30 Oct 2024

See all articles by Sifa Celik

Sifa Celik

Eindhoven University of Technology (TUE) - Department of Industrial Engineering and Innovation Sciences

Albert H. Schrotenboer

Eindhoven University of Technology (TUE)

Layla Martin

Eindhoven University of Technology (TUE) - Department of Industrial Engineering and Innovation Sciences

T. van Woensel

Eindhoven University of Technology (TUE)

Date Written: October 14, 2024

Abstract

We explore the critical balance between immediate and delayed communication of time windows to customers. Faster communication benefits customers but potentially harms routing quality, including on-time delivery and transport costs. This paper addresses the Dynamic Delayed Time Window Assignment Vehicle Routing Problem (DDTWAVRP), a complex decision-making challenge logistic service providers face. We model the DDTWAVRP as a semi-Markov Decision Process (MDP) with a finite time horizon. We propose to use Deep Controlled Learning (DCL). This deep reinforcement learning approach tackles the computational challenges of large state-decision spaces through approximate policy iteration, efficient state sampling, and effective dataset construction to evaluate the value of delay. We compare the performance of the proposed methodology with five other benchmark policies. Our numerical study shows a 7.4% improvement in total cost that includes waiting time of customers and routing cost, and an 11.2% decrease in routing cost if we allow delaying a time window assignment. Compared to only assigning time windows once all demand is known, routing costs only increase marginally. We show that the decision to delay a time window assignment depends on the current state and must be tailored to customers.

Suggested Citation

Celik, Sifa and Schrotenboer, Albert H. and Martin, Layla and van Woensel, T.,
Is Waiting Worth It? The Value of Delaying Time Window Assignment in Vehicle Routing Problems
(October 14, 2024). Available at SSRN: https://ssrn.com/abstract=5004663 or http://dx.doi.org/10.2139/ssrn.5004663

Sifa Celik (Contact Author)

Eindhoven University of Technology (TUE) - Department of Industrial Engineering and Innovation Sciences ( email )

Den Dolech 2
Eindhoven
Netherlands

Albert H. Schrotenboer

Eindhoven University of Technology (TUE) ( email )

PO Box 513
Eindhoven, 5600 MB
Netherlands

Layla Martin

Eindhoven University of Technology (TUE) - Department of Industrial Engineering and Innovation Sciences ( email )

Den Dolech 2
Eindhoven
Netherlands

T. Van Woensel

Eindhoven University of Technology (TUE) ( email )

PO Box 513
Eindhoven, 5600 MB
Netherlands

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