Re-route Package Pickup and Delivery Planning with Random Demands
  Recently, a higher competition in logistics business introduces new
challenges to the vehicle routing problem (VRP). Re-route planning, also known
as dynamic VRP, is one of the important challenges. The re-route planning has
to be performed when new customers request for deliveries while the delivery
vehicles, i.e., trucks, are serving other customers. While the re-route
planning has been studied in the literature, most of the existing works do not
consider different uncertainties. Therefore, in this paper, we propose two
systems, i.e., (i) an offline package pickup and delivery planning with
stochastic demands (PDPSD) and (ii) a re-route package pickup and delivery
planning with stochastic demands (Re-route PDPSD). Accordingly, we formulate
the PDPSD system as a two-stage stochastic optimization. We then extend the
PDPSD system to the Re-route PDPSD system with a re-route algorithm.
Furthermore, we evaluate performance of the proposed systems by using the
dataset from Solomon Benchmark suite and a real data from a Singapore logistics
1company. The results show that the PDPSD system can achieve the lower cost
than that of the baseline model. In addition, the Re-route PDPSD system can
help the supplier efficiently and successfully to serve more customers while
the trucks are already on the road.
