The dynamic multi-period vehicle routing problem

This paper considers the dynamic multi-period vehicle routing problem which deals with the distribution of orders from a depot to a set of customers over a multi-period time horizon. Customer orders and their feasible service periods are dynamically revealed over time. The objectives are to minimize total travel costs and customer waiting, and to balance the daily workload over the planning horizon. This problem originates from a large distributor operating in Sweden. It is modeled as a mixed integer linear program, and solved by means of a three-phase heuristic that works over a rolling planning horizon. The multi-objective aspect of the problem is handled through a scalar technique approach. Computational results show that the proposed approach can yield high quality solutions within reasonable running times.