A tabu search heuristic for the vehicle routing problem with private fleet and common carrier

This paper describes a tabu search heuristic for a vehicle routing problem where the owner of a private fleet can either visit a customer with one of his vehicles or assign the customer to a common carrier. The owner’s objective is to minimize the variable and fixed costs for operating his fleet plus the total costs charged by the common carrier. The proposed tabu search is shown to outperform the best approach reported in the literature on 34 benchmark instances with a homogeneous fleet.