Modeling open vehicle routing problem with real life costs and solving via hybrid civilized genetic algorithm

Abstract

Many companies prefer to use third party logistics firms to deliver their goods and as such planning the return of the vehicles to the depot is not required. This is called open vehicle routing problem (OVRP). In literature, the OVRP is handled with minimum distance as objective function like vehicle routing problem. But in the real world, the objective function achieves minimum many costs like standard routing cost, stopping by cost and the deviation cost. The standard routes are previously defined under free market conditions by third party logistic firms. The deviation from the standard route is required to arrive cities which are not on the standard route. The stop by cost occurs on the delivery points. In this paper mentioned three costs are considered in the objective function while many papers consider only distance related costs in the literature. This paper proposes a new mathematical model for the OVRP. In the constraints, the last points of the routes are researched in detail. The standard route costs are determined by considering the last point of the route. Because of the NP-hard structure of the OVRP, the proposed mathematical model is solved with a hybrid metaheuristic called Civilized Genetic Algorithm (CGA). CGA is developed by hybridizing a modified genetic algorithm and a local search algorithm. The application of this study is implemented for the delivery routing of a combi boiler producer in Turkey. The third party logistic firms may use this proposed model and the solution approach for the real life applications.