The pickup and delivery traveling salesman problem with handling costs

This paper introduces the pickup and delivery traveling salesman problem with handling costs (PDTSPH). In the PDTSPH, a single vehicle has to transport loads from origins to destinations. Loading and unloading of the vehicle is operated in a last-in-first-out (LIFO) fashion. However, if a load must be unloaded that was not loaded last, additional handling operations are allowed to unload and reload other loads that block access. Since the additional handling operations take time and effort, penalty costs are associated with them. The aim of the PDTSPH is to find a feasible route such that the total costs, consisting of travel costs and penalty costs, are minimized. We show that the PDTSPH is a generalization of the pickup and delivery traveling salesman problem (PDTSP) and the pickup and delivery traveling salesman problem with LIFO loading (PDTSPL). We propose a large neighborhood search (LNS) heuristic to solve the problem. We compare our LNS heuristic against best known solutions on 163 benchmark instances for the PDTSP and 42 benchmark instances for the PDTSPL. We provide new best known solutions on 52 instances for the PDTSP and on 15 instances for the PDTSPL, besides finding the optimal or best known solution on 102 instances for the PDTSP and on 23 instances for the PDTSPL. The LNS finds optimal or near-optimal solutions on instances for the PDTSPH. Results show that PDTSPH solutions provide large reductions in handling compared to PDTSP solutions, while increasing the travel distance by only a small percentage.