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Eindhoven University of Technology MASTER Heuristic solutions to the vehicle routing problem with mixed backhauls in a high value sector Lancée, M. Award date: 2015 Link to publication Disclaimer This document contains a student thesis (bachelor's or master's), as authored by a student at Eindhoven University of Technology. Student theses are made available in the TU/e repository upon obtaining the required degree. The grade received is not published on the document as presented in the repository. The required complexity or quality of research of student theses may vary by program, and the required minimum study period may vary in duration. General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain

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Page 1: Eindhoven University of Technology MASTER Heuristic

Eindhoven University of Technology

MASTER

Heuristic solutions to the vehicle routing problem with mixed backhauls in a high value sector

Lancée, M.

Award date:2015

Link to publication

DisclaimerThis document contains a student thesis (bachelor's or master's), as authored by a student at Eindhoven University of Technology. Studenttheses are made available in the TU/e repository upon obtaining the required degree. The grade received is not published on the documentas presented in the repository. The required complexity or quality of research of student theses may vary by program, and the requiredminimum study period may vary in duration.

General rightsCopyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright ownersand it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights.

• Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain

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Eindhoven, August 2015

Martijn Lancée

Bsc. Industrial Engineering – TU/e

Student identity number 0681737

in partial fulfillment of the requirements for the degree of Master of Science

in Operations Management and Logistics University supervisors: Dr. E. (Emrah) Demir, TU/e, OPAC Prof. Dr. T. (Tom) Van Woensel, TU/e, OPAC Company supervisors: W. (Wil) Louvet, Idealogistic Verhoeven

L. (Louis) Bardoel, Idealogistic Verhoeven

Heuristic solutions to the vehicle

routing problem with mixed

backhauls in a high value sector

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Keywords: Vehicle routing problem, mixed backhauls, time windows, heterogeneous fleet, high-value

freight, transportation, heuristics, TAPA

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Abstract This master thesis develops a heuristic based script that solves a complex vehicle routing problem with

up to 250-300 customers in a company that is specialized in transporting high value goods. The solution

to this problem can also be used to determine average load factors, fuel emission rates and other

performance indicators. It is to be used as a decision support tool for the management in their search

for such a tool for the Benelux and other planning departments. The focus lies in reaching feasible

solutions for planners to work with in limited time, but in order to aid the department in reserving

resources such as trailers also a regression is done. The routing solver is developed in three phases.

Phase one is where the working methods of the department are analyzed and a general concept for

the solver is made to ensure usability. Phase two is the actual development where the amount of

constraints are set and weighed against complexity – thus calculation time. In phase three the results

of the solver are compared to the planning made by the department in a case study and a look ahead

into implementation scenarios is made.

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Executive Summary Road transportation is a big part of the integral supply chain and has mostly been the main way of

transporting goods throughout Europe. The direct costs of road transportation have been increasing

since 2000 and even more so in recent years. Since the economic crisis, logistics service providers have

to focus more on their planning and execution and areas of expertise in order to survive.

Goal The research project that is presented in this thesis, is the result of the cooperation with a Dutch based

leading logistics service provider in secure and fast transport, Idealogistic Verhoeven, henceforth called

IDLV. The research is focused to the operational day-to-day planning for the short hauls within the

Benelux area. The Benelux planning department handles 300-400 requests per day and has to respect

a high number of practical constraints that are the result of their specialized secure transportation,

such as numerous vehicle type constraints, time windows, container loading and the fact that IDLV

operates with mixed backhauls. At the same time, a new transport management system is being

prepared for implementation. Thus the goal of this research was to develop a model that quantifies

the planning process along with all its constraints, that can solve the planning problem and if

implemented can reduce the workload on employees and reduce cost drivers within the execution.

Present situation The transport management system at this point supports the diversion of one order into multiple

planning lines: separated into pickup orders, delivery orders and more such as transshipment, long

haul or storage. Planning lines consist of quantities, time windows (although in text format), high value

specifications, other vehicle requirements (also in text format), addresses and unique ID numbers.

These are the inputs for planners to manually create a planning using a detailed hard copy map of the

Benelux. There are some issues concerned with the manually made planning: it is a time consuming

task and the result is an inflexible planning that is hard to test for mistakes. The knowledge required

to make the planning is nested in human capital. Some of the constraints that planners take into

account are:

Time windows

Three dimensional container loading

Customer location related vehicle constraints

Order related vehicle constraints

Capacity calculation complexity from mixed backhauls

Direct order deliveries without transshipment

Maximum tour length

Maximum working hours

Driver scheduling

Reserving trailer space for possible on-line pickup orders

Model The original purpose was to develop a model that could solve the vehicle routing problem with mixed

backhauls, and which could decide between direct shipments and shipments over the depot. However,

the logistics and temporal structures within the transport management system make the problem too

complex. Together with this, a distinct need for a prediction model for resource reservation became

clear. Therefore a regression model was made for the prediction of numbers of trailers, together with

a tool that can solve the vehicle routing problem with mixed backhauls and the other constraints that

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exist. Also, a green extension to the routing tool was made, to shift the objective away from distance

minimization, to CO2 and CO2e emissions minimization.

If both the regression model and the routing tool were to be implemented, the following decisions

were to be shifted towards or supported by the models:

DECISIONS SUPPORTING BENELUX AREA PLANNERS REGRESSION MODEL

ROUTING TOOL

DRIVER ALLOCATION ✓

DECISIONS OF ASSIGNING ORDERS TO CHARTER

ESTIMATING RESOURCES NEEDED ✓

MAPPING OF LOCATIONS ✓ CONSOLIDATION ✓ FEASIBILITY CHECK ✓ DESIGNING ROUTES ✓ KPI CALCULATION ✓ CREATING LOAD PLAN FOR TRANSSHIPMENT

In particular, a case study confirms that when the tool solves the vehicle routing problem with mixed

backhauls and true fleet heterogeneity, it can attain a direct fuel related cost saving of 20%, together

with reducing distances with 25%. Apart from the direct cost savings, there are also plenty ‘soft’

savings. The time it takes to develop a planning can be reduced with 80%, and the tool can also serve

as a feasibility checker, thus relieving the planners of some of their tasks. The load factors per ride, and

over the entire planning can now be calculated so that capacity utilization is guaranteed.

Implementation would also mean the automated generation of loading plans, to which end the way

could be paved for the transshipment center to look into options for automating some scheduling for

their own. Also, the regression model takes away the guessing that is currently done about resource

reservation and allows IDLV to make investment decisions in new resources vs outsourcing.

Consequently the implementation of both the regression model and a routing tool can help planners

achieve feasible, better solutions to their planning tasks, while also reducing the time and effort

needed to come to these decisions. Please do note that during this project it has never been the

intention of the author nor the company to replace the planners’ tasks with that of automated systems.

In contrast, due to the human capital focus that IDLV prides itself in, these tools are designed to

facilitate planners in their tasks. Therefore the solutions generated should be addressed as an initial

sketch with which the planners can design final solutions, or as KPI indicators which help planners

make decisions.

Recommendations We would recommend IDLV, first of all to implement a routing software package. It has been shown

that even though IDLV has complex operations and specific constraints, it is possible to tailor a

standard package to their needs to come to feasible solutions. Because of the calculation speed and

reliability issues, a tool that runs in VBA is not suited for such a professional company with high safety

standards. Therefore, when IDLV is finished implementing their new TMS, it would be very wise to look

into more professional packages. One option would be to hire a programmer and rewrite some code

to work in a more reliable and faster shell, together with professional modules for geocoding and road

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distance calculation. Another option would be to use the constraints addressed in this thesis as well as

the pseudocode to handle them and use this to tailor fit a professional package to their TMS.

The reasons for implementing this tool are twofold. First off, generous cost and emission savings can

be attained. On the other hand, assisting planners in their work and valuing human capital has always

been a high standard at IDLV and implementing a routing software package will aide planners

noticeably. Also these types of automations can be the start of automating other operations, and they

visualize better the KPIs that IDLV has.

As a final recommendation we urge IDLV to use the regression model, but update the proposed

correction factor until the sample size for a new regression based on material instead of rides is about

that of one year. The regression tool can be a very simple but effective way to familiarize planners with

automated solutions that may come in the future.

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Preface This report is the result of the final stage of my master education ´Operations Management and

Logistics´ at the Eindhoven University of Technology. I have been given the chance to perform this

project at Idealogistic Verhoeven, where complex routing problems are solved daily. Idealogistic has

given me a lot of freedom in the project, so that I could not only practice the academic part of the

project, but also grow in terms of communications, expectancy management and implementation

skills.

I could not have come to such results without the help and support of the company. The operational

director and general manager have guided me personally throughout the process. I would therefore

like to thank operational director Louis Bardoel for making time and thinking along with me. He and

his practical knowledge of the work environment has helped me to keep a focus on making the final

product usable, and helped me set a scope. I would also like to thank Will Louvet for entrusting me

with this project. Furthermore, Will has challenged me to improve other skills such as my

communicational skill and I really enjoyed discussing other matters such as career paths and even a bit

of philosophy. Finally I would like to thank all the other stakeholders in the company who made me

feel welcome, were very interested in the project and all helped me where they could.

From the university I would like to thank dr. Emrah Demir, my first supervisor. Emrah and I share the

interest in the practical applicability of vehicle routing research and it was always very interesting to

discuss matters I came across at the company. He took his time to answer my questions and I always

felt as if he was up-to-date about my progress. I would also like to thank prof. dr. Tom van Woensel

for taking the time to read and assess the quality of this thesis.

From my personal surroundings I would like to thank my mother and father for supporting me both

financially and emotionally during these years, my little brother and best friend and my fellow students

and dear friends with whom I have done a lot of studying, Erwin, Vital and Bram. Finally I also have to

thank my roommates for allowing me to vent some steam during these years, Thijs and Steven.

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Contents Abstract ................................................................................................................................................... 3

Executive Summary ................................................................................................................................. 4

Goal ..................................................................................................................................................... 4

Present situation ................................................................................................................................. 4

Model .................................................................................................................................................. 4

Recommendations .............................................................................................................................. 5

Preface ..................................................................................................................................................... 7

List of Abbreviations .............................................................................................................................. 10

Chapter 1: Introduction ................................................................................................................... 11

1.1 Fleet description .................................................................................................................... 12

1.2 IDLV’s logistic network .......................................................................................................... 12

1.3 Overview ................................................................................................................................ 13

Chapter 2: Assignment .................................................................................................................... 14

2.1 Literature review ................................................................................................................... 14

2.1.1 Research area ................................................................................................................ 14

2.1.2 Container loading .......................................................................................................... 14

2.1.3 Vehicle routing problems .............................................................................................. 15

2.1.4 Green logistics ............................................................................................................... 16

2.1.5 Vehicle routing algorithms, heuristics and metaheuristics ........................................... 17

2.1.6 Combinatorial problems in freight transport ................................................................ 17

2.1.7 Literature gaps ............................................................................................................... 18

2.2 Research questions................................................................................................................ 18

2.3 Scope ..................................................................................................................................... 18

Chapter 3: Performance analysis .................................................................................................... 20

3.1 Order arrival process ............................................................................................................. 20

3.2 Ride planning ......................................................................................................................... 21

3.3 Transshipment ....................................................................................................................... 23

3.4 Volume analysis ..................................................................................................................... 23

3.4.1 Volumes and factors ...................................................................................................... 24

3.4.2 Pattern identification .................................................................................................... 25

3.4.3 Regression analysis ........................................................................................................ 28

3.4.4 Analysis of green indicators ........................................................................................... 30

Chapter 4: Mathematical modeling ................................................................................................ 33

4.1 General information on VRP models ..................................................................................... 33

4.2 Mixed integer linear programming problem ......................................................................... 34

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Chapter 5: Development of decision support model ...................................................................... 36

5.1 Comparing alternatives ......................................................................................................... 36

5.1.1 Communities ................................................................................................................. 36

5.1.2 Applications ................................................................................................................... 36

5.1.3 Engines and web services .............................................................................................. 37

5.2 VRP-model ............................................................................................................................. 38

5.2.1 Revised VRP-model with Mixed Backhauls (MB)........................................................... 39

5.2.2 Revised VRPMB-model with true fleet heterogeneity .................................................. 42

5.2.2 Revised HFVRPMB-model with faster LNS heuristic ..................................................... 44

5.3 Revised HFVRPMB-model with green extension (G-HFVRPMB) ........................................... 45

5.5 Revised geocoding and distance matrix ................................................................................ 46

5.6 Discussion .............................................................................................................................. 46

Chapter 6: Computational studies .................................................................................................. 48

6.1 Computational study: Faster LNS heuristic analysis .............................................................. 49

6.1.1 Description of case ........................................................................................................ 49

6.1.2 Case study results .......................................................................................................... 50

6.2 Computational study: LNS operator analysis ........................................................................ 51

6.2.1 Description of case ........................................................................................................ 51

6.2.2 Case study results .......................................................................................................... 52

6.3 Green extension analysis ....................................................................................................... 54

6.3.1 Description of the case .................................................................................................. 54

6.3.2 Case study results .......................................................................................................... 55

Chapter 7: Real life case studies ...................................................................................................... 56

7.1 Description of the case .......................................................................................................... 56

7.2 Case study results .................................................................................................................. 57

7.2.1 Actual results from the planning department ............................................................... 57

7.2.2 Results from the solver .................................................................................................. 58

7.3 Case study conclusions .......................................................................................................... 59

Chapter 8: Conclusions .................................................................................................................... 60

8.1 Limitations ............................................................................................................................. 61

8.2 Implementation ..................................................................................................................... 61

8.3 Recommendations................................................................................................................. 62

8.4 Future research ..................................................................................................................... 62

9 Appendix ........................................................................................................................................ 64

9.1 tables and images .................................................................................................................. 64

9.1.1 Planning process according to the quality manual....................................................... 64

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9.1.2 Order arrival and planning process, gathered from interviews ...................................... 0

9.1.3 Screenshot planning lines ................................................................................................ 0

9.1.4 Screenshot of the obtained per-day overview ................................................................ 0

9.1.5 Benelux fleet emission numbers for January 2015 ......................................................... 1

9.1.6 Case study customer locations for dataset A-50 through A-250 .................................... 2

9.1.7 Case study customer locations for dataset B-50 through B-300 ..................................... 7

9.1.8 Screenshot of the original solver’s console worksheet ................................................. 13

9.1.9 Screenshot of the revised solver’s console worksheet ................................................. 14

9.2 References ............................................................................................................................. 15

List of Abbreviations IDLV Idealogistic Verhoeven

TMS Transport Management System

VBA Visual Basic for Applications

VRP Vehicle Routing Problem

VRPMB Vehicle Routing Problem with Mixed Backhauls

HV/HR High Value/High Risk

ODL Open Door Logistics

VeRoLog EURO Working Group on Vehicle Routing and Logistics Optimization

CO2 Carbon dioxide

CO2e Carbon dioxide equivalent. CO2e allows other greenhouse gas emissions to be expressed in terms of CO2 based on their relative global warming potential

LNS Large Neighborhood Search

TAPA Transported Asset Protection Association

LSP Logistics Service Provider

3PL Third-party Logistics Service Provider

LTL Less than truckload

FTL Full truckload

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Chapter 1: Introduction IDLV operates as a shipper and third party logistics provider in the axis from Ireland to Poland and

Slovakia. The main office and west-European international and Benelux distribution planning hub is

situated in Uden and also functions as a transport hub for the Benelux area. The eastern-European

international planning hub is situated in Poznan. IDLV owns 11 other hubs and a fleet of 62 trucks.

These other hubs are self-regulatory. Within the network created by connecting these 13 hubs, IDLV

operates long-hauls. From the hubs to customer addresses, the short-hauls - either pickups or

deliveries - are orchestrated. IDLV offers its customers groupage shipments, LTL and FTL shipments. All

hauls are executed using trucks, meaning that there is no inter-modality.

A subset of the orders transported by IDLV may be susceptible to theft and can be classified as HV/HR

(high value/high risk). For this special kind of order more constraints have to be considered. Within

this classification, another six classifications exist, each with their own constraints. These constraints

can apply to specifications on the following areas: Trailers, trucks, drivers, routes, stopping locations

and monitoring. The rich amount of constraints make IDLV an interesting case, where academic

research can meet practical situations.

Decision making for long-hauls and short-hauls in certain areas of Europe is split up to different

responsible departments. In both processes of planning rides, some support is currently available for

planners in a somewhat dated transport management system (TMS). The support is in form of an

overview of all the addresses that need to be visited on a certain day, which the dimensions and weight

of the order. Other information such as the time window for delivery is also available, although not

standardized but as a separate comment.

This TMS is to be updated between the second half of 2015 and the beginning of 2016. It is a long

awaited update for which its’ underneath structures are changed significantly. This operation will be

costly and time consuming, but more possibilities for automation and planner support will become

available. The supplier of the TMS offers routing software components from a partnering company,

but these come at a high price, intense integration and results cannot be measured beforehand.

IDLV has been growing for a long time and even during the crisis, positive profits have been attained,

superseding other transportation service providers.

IDLV has a strong open culture where human capital is highly valued and personal growth is stimulated.

Colleagues can enter the company as a truck driver and if wanted are challenged to grow into more

responsibilities. The company prides itself in these trajectories and sees the value of colleagues having

relevant knowledge of all aspects of the company in order to make the best decisions. That said, the

amount of orders to be handled by the Benelux short haul planning department on a daily basis is

growing, and therefore also complexity. Automating a yet to be determined part of the planning

process can arguably take workload of the planning department, allowing for sustained performance

in case of growth.

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1.1 Fleet description

IDLV has a fleet of about 70 trucks. Of these 70 trucks, an average of 40 operate the Benelux zones

daily. These trucks are either driven by IDLV’s own fleet or drivers that are contracted out. For the

Benelux department, IDLV operates with trailers that may or may not have:

DIFFERENCES IN TRAILER FEATURES OPTIONS

TYPE OF TRAILER BODY Tautliner Boxtrailer

TYPE OF LOCKS SBS Electric

TYPE OF DOORS Docking doors Tailgate Table 1: Different options for IDLV's trailers

This means that there are about eight different types of trailers that can be used. For the owned fleet

that is used in the Benelux, the following brands, type numbers, building years and Euro emission

standards apply:

TYPE OF TRUCK EURO NORM AMOUNT OWNED YEAR OF BUILD

VOLVO FH12 4 5 2003

VOLVO FH12 3 1 2003

VOLVO FH12 4 2 2005

VOLVO FH 440 5 4 2006

DAF XF95 3 2 2005

DAF XF95 5 1 2006

VOLVO FH 440 5 1 2009

VOLVO FH 440 5 1 2009

VOLVO FH 480 5 2 2008

DAF XF 105.480 5 1 2008

DAF XF105.460 5 1 2006

DAF XF105 5 1 2007

VOLVO FH42 5 1 2008

VOLVO FM9 3 1 2005

VOLVO FH 420 6 1 2013 Table 2: IDLV's fleet that operates in the Benelux

1.2 IDLV’s logistic network

As IDLV was growing, a certain distinction between different regions needed to be made. It was

decided to create an underlying network for their TMS, which translates their service area into specific

zones. For example, the United Kingdom has certain zones and certain hubs. When choosing either

one of those, it becomes immediately clear if a collection, distribution or transshipment is to be made.

This has not only made it easier for IDLV to more clearly determine customer prices, but also makes

interdepartmental collaboration easier. When an order originating in Poland and destining in the

Benelux is accepted, the Eastern-European planning department decides on the collection process and

the transshipment options within Poland. Automatically, for the Benelux department, a distribution

order is generated for the expected time when the order has arrived at the Uden hub.

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Figure 1: The axis in which IDLV operates. Note that Eindhoven and Poznan areas form the main planning hubs

Between these hubs and agents, linehauls are orchestrated. From these hubs, the pickup and deliveries

are made. If a shipment is to be made from the Poznan area to the Eindhoven area, the Poland planning

department enters the order into the system, arranges the pickup in the area and adds the shipment

to a linehaul from Poznan to Eindhoven. Automatically, for the scheduled day of arrival in Eindhoven,

the Benelux department will receive a planning line to distribute this shipment in the Eindhoven area.

1.3 Overview The rest of this thesis is structured as can be seen in figure (2)

1. Introduction 2. Assignment3. Performance

analysis

What is the field?

What needs to be developed?

What is the current state of the company?

4. Mathematical model

5. Developing the model

What is the framework?

What alternatives are

there?

6. Computational

studies

7. Real life case study

How do certain operators and settings act?

How does the tool’s outcome differ from the actual

planning?

8. Conclusions

What have we learned? What

should the company do?

9. Appendix

Figure 2: Schematic overview of how the chapters interrelate

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Chapter 2: Assignment IDLV is at the moment of writing this thesis, preparing the implementation for a new TMS which allows

for more ways to support planners with their tasks. One option would be to purchase a routing

software package from one of the biggest developers of these kinds of software. The combination of

the multiple of constraints that exist in their practical Vehicle Routing Problem that is to be solved daily

has yet to be researched on academic level to the best of my knowledge. It is unknown to IDLV the

amount and type of savings that can be made with implementing a tailor made vehicle routing tool.

Therefore it is a very difficult decision to make whether or not to implement such a software package.

This means IDLV wants to know their exact planning process, what factors need to be taken into

account when designing a tool for such a process, what limitations it has and what kind of savings can

be obtained.

This assignment therefore focuses on designing such a tool to see exactly how similar tools work and

why it could be beneficial to use such a tool. Research questions to support the focus of this thesis are

set up in chapter 2.2, partly based on the constraints selected by IDLV. The literature study in chapter

2.1 aims to get more insight in relevant literature and supports chapter 2.2. In chapter 2.3 a more

detailed scope for the assignment is given and chapter 2.4 provides the reader with the research

method used to answer the research questions.

2.1 Literature review To get more insights into practices in transport, what types of vehicle routing problems exist and how

route design interacts with trailer loading, a literature review is conducted. It is tried to find cases in

literature that overlap with the practical case at hand and to see how practical problems are solved.

2.1.1 Research area

The field in which this review is executed is that of freight transport. In Europe a common transport

policy between borders is relatively young. 1986’s Single European Act relieved restrictions on air and

sea transportation, where only in 1992 the Maastricht Treaty (European Union, 2014) ruled for the

existence of Trans-European Networks (TENs) in order for trucks to return to their country of origin

without empty trailers. It can thus be said that the inter-European transportation sector has only been

given the chance to grow for a relatively short time. Within freight transport, the classic operations

research fields of container loading and vehicle routing and their overlap are reviewed from their

origins to the richest cases to see what has been researched and where literature gaps exist.

2.1.2 Container loading

Container loading, or often also called containerization, is the problem of packing multiple, three-

dimensional small items (freight) in three-dimensional cubic larger objects (container). Container

loading problems can therefore be interpreted as geometric assignment problems. In essence,

container loading can be reduced to a special case of the cutting and packing problem (C&P), which is

NP-hard. All problems can be said to be cutting and packing problems if they have the following

problem structure (Wäscher et al., 2007): there needs to be a set of large objects (input/supply) and a

set of small items (output/demand). Wäscher et al. (2007) and Bortfeldt and Wäscher (2013) make

more statements on certain categorization criteria to define generalized versions of the cutting and

packing problem. The exact five categorization criteria are dimensionality, kind of assignment,

assortment of large objects, assortment of small items and shape of the small items (Wäscher et al,

2007).

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The paper of Bortfeldt and Wäscher (2012) aims to review all constraints found in container loading

literature. The constraints have been categorized in figure (3) below.

Figure 3: Categorization of container loading constraints according to Bortfeldt and Wässcher (2012)

In freight transport, the customer visitation order implies the trailer/container loading pattern. This is

called an allocation constraint.

Rectangular packing problems in general are shown to be NP-hard problems (Fowler et al., 1981).

Irregular packing problems or 3D packing problems can be seen as more complex. Therefore these, as

well as packing problems with added complexity constraints, can also be regarded as NP-hard. This

means that computational resources needed to solve such a problem for the optimal packing are too

costly. One resource used to determine computational needs is solving time, especially measured in

CPU usage. As CPU strength increases, one day these problems might no longer be considered NP-

hard, or NP-hard problems may be solvable in seconds. However, research suggests that in the

medium-long term, CPU strengths will not dissolve NP-hard problems (Drexl, 2011).

2.1.3 Vehicle routing problems

The vehicle routing problem is one of the most well-known success stories of operations research

management. Being first published under the title ‘Truck Dispatching Problem’ (Dantzig and Ramser,

1959) makes this problem over 55 years old. To put it simply, the VRP is defined as the designing of a

number of delivery routes from a depot to a number of geographically dispersed customers, while

minimizing delivery costs (Laporte, 2009). When solving the VRP, a different set of side constraints may

apply.

For so-called pickup and delivery problems, there are two types of customer: the transportation of

goods from the depot is done to line-haul customers and then from backhaul customers back to the

depot. These pickup and delivery problem classes are handled as VRPBs, Vehicle Routing Problems

with Backhauls. Within these vehicle routing problems, several more classifications are possible,

depending on the order in which line-hauls and backhauls are done and the consideration of customers

as either line- or backhaul customer or as both. These classifications can be seen below in table (1).

Container-related constraints

Weight limits

Weight distribution constraints

Item-related constraints

Loading priorities

Orientation constraints

• vertical orientation

• horizontal orientation

Stacking constraints

Cargo-related constraints

Complete-shipment

constraints

Allocation constraints

Positioning constraints

absolute positioning constraints

relative positioning constraints

Load related constraints

Stability constraints

Complexity constraints

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SUBCLASS TYPE DEFINITION ABBREVIATION

CLUSTERED

BACKHAULS

The version of the problem where all line-hauls have

to be done before the backhauls can be collected

VRPCB

MIXED BACKHAULS Problem without clustering restriction: mixed visiting

sequences are explicitly allowed

VRPMB

DEVISIBLE DELIVERY

AND PICKUP

Customers are associated with

both a linehaul and a backhaul quantity. Two visits,

one for delivery and one for pickup are possible

VRPDDP

SIMULTANEOUS

DELIVERY AND PICKUP

Every customer is associated with a linehaul as well as

a backhaul quantity. It is imposed that every

customer can only be visited exactly once

VRPDSP

Table 3: Various subclasses of the VRPMB

Apart from the Pickup and Delivery problem, which is practically a generalized version of the Vehicle

Routing Problem, the other most important fundamental variants of the classical VRP are, according

to Drexl (2011):

VRPs with time windows (VRPTW) imply that the service the carrier gives to the customer

(either a pickup or a delivery) will have to start within a given time window. An order may have

to be picked up after a certain time, delivered in a specific period or after a certain period.

Capacitated arc routing problems (CARP) do not plan around visiting customers to perform a

service (again either a pickup or delivery), but rather the service is performed while traveling

along the links of a transportation network

VRPs under uncertainty:

o Stochastic VRPs assume that information on both occurrence (order intervals) and the

volume of customer demand, or even travel times between customers, is given by

probability distributions.

o Dynamic VRPs take into account the fact that planners need to make decisions (e.g. on

a preliminary planning) before all orders are known. These preliminary plans need to

be adjusted multiple times in such situations, changing the way such a problem needs

to be addressed.

Inventory routing problems (IRP) do not use customer demands in their formulation. Instead

customers have certain consumption rates. Apart from that, customers have given initial

amounts of goods and storage capacity. In a multi-period planning horizon, the challenge then

becomes for the depot to make sure customers never run out of goods, while planning routes

of minimal costs.

2.1.4 Green logistics

Another version of the VRP which is rapidly gaining popularity is the concept of green logistics. Green

logistics has emerged as a new point of focus in supply chain management. Traditional objectives in

distribution management and other operations management practices have been to minimize cost.

Now these objectives are slowly upgraded to ‘system-wide’ costs, where economic as well as

environmental issues are addressed (Canhong Lin et al., 2014). For an overview of which types of

negative externalities are associated with logistics, such as air pollution, noise pollution and

congestion, and how these can be modeled, the reader is referred to the work of Demir et al. (2015).

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The research on Green-VRP (G-VRP) primarily focuses on the energy consumption in route planning.

Transportation, being one of the primal building blocks of economic growth, is also one of the biggest

user of fossil fuels (Salimifard et al., 2012). This means that G-VRP has to incorporate multiple aspects

that contribute to fuel consumption: travel speed, load weight and transportation distance (report by

the US department of Energy, 2008). The aspects that typically contribute to the fuel consumption can

be categorized in the following factors: vehicle related, environment related, traffic related, driver

related and operations related (Demir et al., 2014b). In their work, Demir et al. also show how to

calculate each factor. Other efforts to reduce pollution associated with vehicle routing can be found in

the work of Demir et al. (2013), where the road gradient and its effects to pollution is taken into

account with designing routes.

2.1.5 Vehicle routing algorithms, heuristics and metaheuristics

Vehicle routing, which generalizes the traveling salesman problem, is fairly difficult to solve. Exact

algorithms have been developed, but they cannot solve large instances. Heuristics are not simply

optimization algorithms, but by selecting an initial solution and looking by local search for

improvement, these methods use less computational power to come up with near-optimal solutions.

Metaheuristics, in their original definition, are ‘’solution methods that orchestrate an interaction

between local improvement procedures and higher level strategies to create a process capable of

escaping from local optima and performing a robust search of a solution space’’ (Gendreau and Potvin,

2013). Since heuristics tend to get stuck in local optima (in the more complex solution spaces), and

therefore do not work as intended, one can use another heuristic (hence the term meta) to help

prevent the original heuristic get stuck in local optima.

A lot of heuristics for the VRP have been proposed over the years (Laporte, 2009). Most of the earlier

produced heuristics are purely constructive. Later, these heuristics started to include an improvement

phase.

When one wants to postoptimize a vehicle routing solution, the option exists for either intraroute

postoptimization or interroute postoptimization (Laporte, 2009). Intraroute moves contain the

improvement of each specific route internally as a traveling salesman problem (as seen in 6.4.2.3).

Interroute postoptimization can act over several routes simultaneously. The latter is somewhat more

challenging, and a lot of algorithms have been proposed for this type of postoptimization, such as

Thompson and Prasaftis (1993).

Local search methods, which are a kind of metaheuristic, typically explore the possible solution space,

starting at an initial solution. With each iteration the current solution is swapped for one in the

neighborhood of that solution (hence the name local search). Typically, local search methods use

interroute moves (Laporte, 2009). The specific importance in local search methods are the mechanisms

that define the neighborhood and explore it.

2.1.6 Combinatorial problems in freight transport

In the two-dimensional loading capacitated vehicle routing problem (2L-CVRP), the loading of freight

into vehicles and the routing afterwards is combined, with the aim of responding to all customer

demand. This specific version this combinatorial problem is relevant in the case where three-

dimensional items need to be transported, but these items cannot be stacked on top of each other

(See also constraints in container loading, 2.1.2). This can be for example be an issue in case of fragility,

large dimensions or planning with unknown heights (Fuellerer et al., 2009). Such is the case with large

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mechanical components for example. In the work of Fuellerer et al., an ant colonization algorithm is

used to solve the problem. Duhamel et al., (2010) propose a multi-start evolutionary local search

method.

2.1.7 Literature gaps

Vehicle heterogeneity is mostly addressed in literature as defining vehicles with specific speeds, costs

and capacities. However not often the fact is addressed that some types of goods can only be

transported on specific vehicles, or the fact that some customers can only be visited with specific

vehicles. The combination of these kinds of ‘true’ vehicle heterogeneity are to my knowledge not yet

researched. Furthermore the VRPMB is only rarely researched. Besides this, the overall knowledge that

is freely available in creating support tools is very limited. Researchers limit their papers to pseudo

code and mathematical modeling, probably due to privacy considerations. This results in a limited open

source availability for companies to test the profitability of such a tool.

2.2 Research questions The research questions are split up into five questions. In the first three questions a thorough

understanding of the way IDLV works is achieved. Constraints are indexed, practicalities are accounted

for and together with the company a feasible plan is made with regards to what should be developed.

In the second part which covers the final two questions, historical data is analyzed and we get a good

idea of what input is available for a vehicle routing tool. With the input and the scope in mind a tool

that covers all of the indexed constraints can be designed to help IDLV in their decision on

implementing such a tool.

1. How does the planning department currently make a routing plan?

a. How do the high value classifications affect constraints?

b. What different types of time-windows exist?

c. How are decisions between own drivers and charter services made?

d. Are there other kinds of order-related constraints?

2. What are the characteristics of the fleet (trucks and trailers) and the drivers, and how can

these be coupled with constraints?

a. How fixed is the fleet used by the Benelux planning department?

b. How many of each type of trailers is there?

c. Can trailer and truck characteristics be translated into vehicle-related constraints?

3. Can order patterns be defined for (returning) customers?

a. Can a regression model proactively estimate the final number of trucks needed, based

on a given amount of orders at a certain moment?

4. To which degree can this process be automated?

a. Can a heuristic also propose the best use for a charter service?

b. Can a heuristic outperform the planners’ routing decisions?

2.3 Scope In reality, IDLV Benelux plans almost all of their orders as problems of the vehicle routing problem with

mixed backhauls, time windows and order related vehicle constraints and customer related vehicle

constraints which result in true vehicle heterogeneity. A very small part (estimated to be smaller than

one per cent) of the orders is transported directly between two customers. In literature, the problem

now becomes a pickup and delivery problem. To the best of my knowledge, a model that combines

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the VRPMB with possibilities to skip the depot and extend into a PDP is not yet researched. Because

only such a small number of orders is handled this way, this is excluded from the scope of this research.

The planning department uses the amount of loading meters as a unit to check for vehicle capacity

feasibility. Often also the type of pallet (euro pallets, block pallets and colli’s are very common) are

used. Because dimensions might translate into few loading meters, but in practice require more space

due to irregular shape, sometimes issues occur. This is exactly the overlap between container loading

and vehicle routing as described in the literature research. However due to the limited amount of

available data as input for a routing tool and the implied added complexity, only the amount of loading

meters is can be used. However to assure feasibility, a predetermined percentage of the trailer capacity

is used. Another part of the tasks done by the planning department is the coupling of trailer to truck,

and truck to driver. Truck-driver combinations can be under contract by IDLV or contracted out. For

example, certain drivers are more accustomed to driving in specific parts of the country. This research

will limit its scope to suggesting which amount of specific types of trailers is needed for all the orders,

thus excluding the coupling of drivers and trucks.

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Chapter 3: Performance analysis For an official description of the planning process, an excerpt from the company’s quality manual can

be found in Appendix 9.1.1. The remainder of this section details personal findings and conclusions.

3.1 Order arrival process

At IDLV, orders typically arrive in two ways. Classically, orders arrive per email or phone at the order

entry department. Also, from the logistic network described in section 1.3, orders can be created as a

result of an international order. In a more recent effort created by IDLV to be more proactive in sales

and create a customer care system, a new department has been created: Sales. In the previous

situation, there was just an order acceptance function within IDLV. Decisions to engage customers in

a fixed contract or to identify more needs were not made by the order acceptance function, leaving a

gap. The sales department focuses on customer care and actively looks for orders by addressing

customers online and visiting them to identify their needs. For example, in freight transport it is

common for some shippers to post their orders at an online platform, where carriers may respond and

offer them a time interval and rates. The sales department actively participates in this. Other activities

include guiding and helping new customers and outsourcing shipments.

3.1.1 Order entry department

The order entry department receives emails detailing new orders. The customer orders that arrive at

the order entry department are originated from customers that already have a contract with IDLV. This

means that they have an agreed pricelist between IDLV and the customer. The prices corresponding

to each unit, for certain kilometers, per customer are fixed in the transport management system used

by IDLV. Most of the customers use their own ordering form, meaning that the order entry department

needs to read the document and extract the information needed from the customer. For the case of

the order entry department for the Benelux, a big part of incoming customer orders already specify

the dates and sometimes even times of order pickup and delivery. These are then entered in TMS,

where the wanted pickup and delivery times are added externally as comments. These orders are,

depending on the desired service level, generated into one or more planning lines as two separate

orders: one for the day of picking them up, one for the day at which they need to be delivered. They

therefore also appear in the order planning collection, used by planners, separately. Orders arrive

usually with little slack. The common way of order arrival (and communication with planners) is the

following. On day t=0 an order arrives. Customers state that the order ‘should’ be picked up at day t=1

if this is possible. Sometimes a comment is added if the order is already ready to be picked up at day

t=0. Depending on the time of order arrival at day t=0, it is scheduled to be picked up the next day:

after 15:00 PM, order entry checks with the planning department if said pickup would be possible. If

they think it is, the order is accepted. This order is then picked up on day t=1 and delivered on day t=2

(or sometimes picked up even at day t=0 if this is possible).

Note: Momentarily, there is an option for the order entry employee to enter orders as direct or

backhaul. The decision is made for an order to be direct if the locations are close to each other. There

is a list with recurring orders (origin-destination pairs) in which these direct shipments are pre-

specified. Order entry checks this list before deciding on a direct shipment.

3.1.2 Sales department

Customers that are not yet under contract with IDLV, or customers that already are but are

transporting irregularly shaped items (not indexed in their pricing contract) contact the Sales

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department. The sales department actively uses spot pricing to make competitive offers for these

customers and also enters orders into the transport management system. In some cases, when

containers are known to do line-hauls which will result in empty returns, the sales department will try

to find patterns of discrepancies and try to even them out in the long run (this does not apply to day-

to-day activities) This does not directly apply to the practice of the Benelux department. With regard

to specific dates and times set by customers there is a notable difference between orders arriving after

a phone call with sales and over email at the order entry department of customers that are already

under contract. About 60% of orders accepted in the sales department have a rather soft constraint

with regards of the order pickup. These orders just simply need to be picked up before they are

delivered for logical reasons. The delivery dates vary from a before date, a fixed day or a fixed time

window. However, the transport management system requires for a pickup day to be set when

entering the order. The sales department usually schedules the pickup to be scheduled the next

planning day in such cases, as advised by the logistic network within the TMS

3.1.3 Logistic network and automated orders

As explained before, some orders are a result of long-haul orders accepted by other departments.

These orders have their ending destination or origin in the Benelux area. Some of the bigger,

contracted customers, can also directly feed orders into the system.

3.2 Ride planning

The ride planning team for Belgium, the Netherlands and Luxemburg (Benelux) operates in two teams.

They work in two shifts, which overlap. For the sake of clarity, one team which starts at 7 am will be

called the morning team, the team which starts at 13 pm will be called the evening team.

24-6-2015 25-6-2015

24-6-2015

Morning team begins (7:00)

24-6-2015

Evening team finalizes planning (23:00)

24-6-2015

Evening team starts (13:00)

24-6-2015 - 24-6-2015

Orders x for shipments arrive

25-6-2015

Morning team begins (7:00)

25-6-2015

Evening team begins (13:00)

24-6-2015

Morning team finishes (18:00)

25-6-2015

Morning team finishes (18:00)

25-6-2015

Evening team finalized planning (23:00)

25-6-2015 - 25-6-2015

Orders x are delivered/picked up

25-6-2015 - 25-6-2015

Orders x+1 for shipments arrive

Figure 4: schematic overview that shows how both the morning and evening team work on the execution of the same planning

3.2.1 Morning team

The morning team starts the workday t=0 more or less with trucks that have been dispatched that

same day. These trucks have their rides already planned, by the evening team (t= -1). Most of the

addresses visited for a truck driver during the day consist of deliveries. Their trailers are packed by the

transshipment department the day before in the evening (t= -1). Some pickup addresses are also

considered and planned. These pickups (backhauls in a vehicle routing problem) can be done in

between deliveries (in vehicle routing this principle is called mixed backhauls). The morning team

troubleshoots problems as drivers are on the way, and are in close contact with drivers that are on the

road. When drivers are done or still busy with their rides for day t=0, planners check the orders that

are ready for pickup at day t=0 as most drivers need to return to the depot anyway. These pickup

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orders are arriving as the drivers are on the road. When assigning new orders to rides that are already

on the road, these orders are technically termed on-line orders. Concluding, the morning team

troubleshoots, accepts new orders and handles on-line orders. Note that not all orders arriving on-line

are added to the on-line rides.

3.2.2 Evening team

The evening team, on day t=0 uses the deliveries that have to be delivered by day t=1 to make their

planning. These have usually been picked up on day t=-1. They use accepted deliveries, which are being

picked up on or before day t=1. After these have been picked up the initial routing for the pickups and

deliveries for day t=1 is made. Because orders to be picked up are arriving during the day, pickup

addresses may be added to the preliminary route plans and routes may be altered. However at 17:00

pm the final amount of addresses is known and the final vehicle routing plan is made. Constraints that

are taken into account:

• HV/HR: high value or high risk products need special trailers to be transported in

• Tailgate / tail lift: some pallets may only be loaded/unloaded using a tailgate, e.g. if a

customer does not own a forklift or a trailer dock. This typically occurs when orders need

to be delivered in an urban area.

• Pickup/delivery: because there are mixed backhauls, loading patterns need to be taken

into account when planning rides

• The measurements of the items: not all accepted orders are euro pallets, making the

loading pattern not simply a sequence, but a two-dimensional loading problem*

*even though the two-dimensional loading problem is intuitively taken into account while planning

rides, a loading plan is not yet decided on when making a routing plan. These two problems are not

yet combined, but rather planners grossly estimate if a feasible loading pattern should be possible to

define, and use some slack in container space.

For a systematical overview of the Benelux planning process, please see Appendix 8.1.2.

3.2.3 Loading constraint implications

A decent subset of the distribution trailers used by IDLV are the so-called curtainsiders, having a width

and length, 248 cm x 1,360 cm. The safer, box-trailers have the same dimensions but can only be

opened from the back. The below image illustrates how exactly 33 euro pallets can fit into a

curtainsider.

Figure 5: A 248 cm x 1,360 cm curtainsider fits 33 euro pallets

Typically, incoming orders can have the following format, with regards to dimensions:

1. Orders are passed on in numbers of euro pallets, these have the following dimensions: 80 cm

x 120 cm. They can be lifted by a forklift from each side

2. Orders are passed on in numbers of block pallets, these have the following dimensions: 100

cm x 120 cm. They can be lifted by a forklift from each side

3. Orders are passed on in terms of loading meters, a loading meter serving as one meter taken

up in the length of a trailer, and the full width of the trailer

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4. Orders are passed on using purely their dimensions (width x length x height)

To calculate a price for their customers, all of the 4 formats are calculated into loading meters. Using

these loading meters, gross estimations on trailer loading utilization can be done.

1. In the case of euro pallets, when putting three next to each other, and having their shortest

side be orthogonal to the curtain side of the trailer, these take up the full width of the trailer,

and 1.2 meters in length. Therefore three euro pallets take up 1.2 loading meters. When

putting two next to each other after rotating them both 90 degrees, they still take up the width

of a trailer, but only 0.8 meters of the length, resulting in 0.8 loading meters. Following this

logic, a euro pallet is always 0.4 loading meters.

2. Following the same logic, when placing two block pallets together so that they span the entire

width of a trailer, they take up one loading meter. Correspondingly, one block pallet takes up

0.5 loading meters.

3. When using more specific dimensions (in width and length) one can multiply width and length

and divide by 240 cm. For the case of a euro pallet: (120 x 80)/240 corresponds with 40 cm,

so 0.4 loading meters.

Using these loading meters as a means of determining utilization is supported by the system IDLV uses,

and it therefore provides an easy performance indicator. However sometimes, especially when load is

not purely consisting of pallets and when unloading constraints have to be taken into account, it is

impossible to achieve full loading meters.

Not all trailers used are curtainsiders. Some are fortified box-trailers, compliant to the TAPA norms and

requirements. This implies loading and unloading only from the tailgate. The packing now resembles a

two dimensional strip packing problem. However, some customers do not have forklifts at their origin

or destination. In such a case, a customer might ask that the truck is equipped with a tailgate to unload

the shipment. Implicitly, if a customer requires a tailgate, this makes the loading or unloading

operation for that specific address also a two dimensional strip packing problem. In this special case,

for other addresses to be done on a route for a specific trailer, the packing problem might differ again.

3.3 Transshipment

The ride planning and its sequential address visits per truck, directly translate into a loading plan for

the transshipment packing. The final loading address for a specific ride is placed first, so close to the

truck. Idealogistic Verhoeven strives to load each truck with a pallet truck (pompwagen). The driver is

expected to apply some own insight when loading mixed backhauls during his ride. Using the pallet

truck, a collected backhaul can be placed in such a way that other distributions are still possible.

3.4 Volume analysis For the Benelux department, as said before, orders arrive as planning lines. It is chosen to go back to

the start of 2012. This provides a large sample size, with over 1000 days to analyze. Also the file size

becomes over 100mb, and for MS Excel stability issues it is chosen not to get a bigger file. We gather

all planning lines from 2012 until the end of May 2015. Each day has about 400 planning lines daily.

Per planning line, data is available to which trailer the order has been assigned, order quantity, weight,

whether it is a pickup or delivery, at what time the order has been entered into the system.

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3.4.1 Volumes and factors By writing some simple macros, we can move from planning lines to average numbers per day, per

ride, and get order inter arrival times. Now we get an idea of the volumes moved on average in the

Benelux area by IDLV. Screenshots from the original overview and the overview obtained from the

macro are given in appendices (9.1.3) and (9.1.4). Overall, from January 2012 to May 2015, an average

of 56 tours have been operated per day. On average, each day about 724782 kg is collected. Also, an

average volume of about 594221 kg is distributed daily. This means that each day, IDLV is responsible

of moving around 1.2 million kilograms of shipments throughout the Benelux area.

Of the average of 56 tours, about 10 are carrying HV/HR goods and can thus be classified as being done

with specialized trailers.

Over the past three and a half years, we can see some seasonality trends, but an overall steady growth

in order volumes. In the figures (6) and (7) below this is visualized. With these increasing order

volumes, complexity increases.

Figure 6: Average daily collection volume in kgs per month

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Figure 7: Average daily distribution volume in kgs per month

Now we have a general idea about how many rides and orders are handled by IDLV. We can also check

the average load factors and distances drives for some days. The load factors and distances are not

typically logged by IDLV and are therefore manually calculated using a complex macro. This will be

explained later on in the report.

We analyze some days to give an image of more KPIs:

Date Amount of

rides

Amount of rides

departing at 7:00

Average load

factor

Total kms

driven

Stops

1-7-2015

56 43 0,52 11185,03 396

2-7-2015

66 45 0,44 10906,36 383

3-7-2015

67 49 0,45 11826,93 366

Table 4: KPIs for the first three days of July 2015

3.4.2 Pattern identification More than just knowing the daily overall data, it is interesting to see if there are overall patterns. These

patterns can be between days and within days.

First we see for each number of days, how many occurrences (days) exist with that number of days.

This way we can see how the average numbers of rides are distributed. The bins that are now plotted

seem to somewhat follow a normal distribution, this can be seen by the bell shape of the graph. It is

good to see that the average number of rides is not just a random number but that there is some

consistency.

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Figure 8: Amount of rides per day and their relative occurence

We see that the most common number of rides is 61 and that this also finds itself somewhat in the

middle of the bell shaped graph. We would like to find the relation between rides and the amount of

orders. Intuitively, one would say that a higher amount of orders leads to more rides, but we have no

idea how this relationship should exactly behave. So for each bin where a number of rides exists, we

can now calculate the average total order volume. When we have these numbers and plot them we

can see a relationship that appears to be linear. This is typically a good indicator that the amount of

rides can be predicted by the amount of orders. This would mean that for IDLV, there may be options

to predict the amount of rides. As of now, there are no such tools available and planners have to

reserve resources based on gut feeling. As stated before, this often results in surplus reservations

which can be costly. However for a prediction this data is not yet suitable, as in this case the order

numbers are measured when the day has already ended, so the total order volume is known. What is

needed for a relevant tool is that the rides can be predicted early in the day.

0

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Figure 9: Average order volume on a day per number of rides per day

Therefore, for such a linear relation between orders and rides to be of practical use, the order arrival

process during the day itself also needs to behave in a somewhat stable way. For a practical tool,

planners might want to know early on in the day what the total amount of orders will be at the end of

the day, as well as the total amount of rides that they will need to plan for the next day. If this is known,

better resource scheduling can be done which should save some money.

So logically the next step is to look at the order arrival process. For each day, the orders that have to

be orchestrated that day are analyzed and sorted into bins, based on when they were entered in the

system. The data is collected starting from one day before the actual day, at 9:00 am. Up until this

point all orders are already accumulated. So for day t=1, we act as if the order arrival process starts at

t-1 at 9:00 am, with already a collection of orders at this point. As stated before the number of rides

with the most observations is 61. In fact there are 73 days where 61 rides are orchestrated. We plot

the average number of orders per timeslot, together with the highest and lowest order numbers. It

shows that the arrival process seems to follow a certain pattern for both collection and distribution

orders. It makes sense that for collection orders, orders arrive even the trucks are already on the road

(on-line). Planners can add collection orders to trucks that are on-line to ensure high load factors and

resource utilization. For distribution this of course is impossible, since distribution orders have to

originate from the depot and can therefore not easily be added on-line.

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1 3 7 20 25 27 31 34 37 40 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71

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Figure 10: Collection order volumes order arrival patterns

Figure 11: Distribution order volumes order arrival patterns

3.4.3 Regression analysis From these somewhat stable order arrival processes, we assume that there might be an option to

predict the number of rides directly from the order arrival process. Of course, the model needs to run

early in the day, so we run a regression with all timeslots for the day before the ride, from 9:00 am

until 15:00 pm. Also dummy variables for the day of the week and the month are included.

All data is prepared for SPSS and a backwards enter method for a linear regression is done. With the

month numbers as dummy variables a less high adjusted r-squared is achieved, so it is chosen to only

use dummy variables for the day of the week.

The adjusted r-squared of the final model comes at 0,712 which is very high. For the days, it seems

that only if the day is Monday, Wednesday or Friday this makes a significant change to the amount of

0

200000

400000

600000

800000

1000000

1200000

Lowest order volume Average order volume Highest order volume

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

Lowest order volume Average order volume Highest order volume

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rides needed. As one would expect, the model uses for both distribution and collection orders the

cumulative amount from the start of the day and from the end (15:00 pm). This should mean that

between these numbers a sort of extrapolation is possible. Below the model summary as well as its

components can be seen.

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 ,848a ,719 ,712 3,447

a. Predictors: (Constant), D_Tminus1_14_15, Monday, C_Tminus1_10_11, Wednesday,

Friday, C_Tminus1_14_15, D_Tminus1_9_10

Table 5: Overall model summary for the regression model, indicating a strong model

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 26,204 1,329 19,717 ,000

Monday -2,759 ,610 -,170 -4,525 ,000

Wednesday -1,556 ,569 -,098 -2,736 ,007

Friday -3,612 ,590 -,225 -6,121 ,000

C_Tminus1_10_11 -8,822E-6 ,000 -,107 -2,299 ,012

C_Tminus1_14_15 3,013E-5 ,000 ,407 8,662 ,000

D_Tminus1_9_10 -1,302E-5 ,000 -,196 -2,447 ,015

D_Tminus1_14_15 4,999E-5 ,000 ,841 10,609 ,000

a. Dependent Variable: Amount_of_Rides

Table 6: Table showing the coefficients of the regression model and their power

For this to be implemented by IDLV should be fairly simple. The result of this regression is a formula

that asks the type of day, the cumulated order volumes for collections up until 11 am and 15 pm and

the cumulated order volumes for distributions up until 10 am and 15 pm.

M: Binary variable, 1 if today is Monday, 0 otherwise

W: Binary variable, 1 if today is Wednesday, 0 otherwise

F: Binary variable, 1 if today is Friday, 0 otherwise

𝐶11: cumulative amount of collection orders at 11:00 am

𝐶15: cumulative amount of collection orders at 15:00 am

𝐷10: cumulative amount of distribution orders at 10:00 am

𝐷15: cumulative amount of distribution orders at 15:00 am

𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑖𝑑𝑒𝑠 𝑛𝑒𝑒𝑑𝑒𝑑

= 26,204 − 2,759𝑀 − 1,556𝑊 − 3,612𝐹 − 8,822 ∗ 10−6𝐶11 + 3,013 ∗ 10−5𝐶15

− 1,302 ∗ 10−5𝐷10 + 4,999 ∗ 10−5𝐷15

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However, what is more welcome for planners is a certain subset of rides per day. This subset, should

be the subset of rides that leave first the next morning. This is the case because trucks get reused

during the day for new rides. For planners, the amount of resources they need to reserve is equal to

the amount of rides leaving at the start of the next workday. Unfortunately for this, some data on

when the ride leaves is needed. This data has only been collected since July 2015. This means that only

about one month of data is available, strongly reducing the sample size used by SPSS if a new

regression were to be done. This would undermine the strong model which has been obtained above.

However for practical purposes, for the available data we can calculate the fraction of rides that leave

in the day with respect to the total amount of rides. This fraction can then be used to correct for the

predicted amount of rides by the regression model. It would also be possible to test the power of this

correction, but once again the sample for the calculation of the fraction is low.

Correlations

VAR00001 VAR00002

VAR00001 Pearson Correlation 1 ,530**

Sig. (2-tailed) ,009

N 23 23

VAR00002 Pearson Correlation ,530** 1

Sig. (2-tailed) ,009

N 23 23

**. Correlation is significant at the 0.01 level (2-tailed).

Table 7: Correlation table showing a strong positive relation between amount of rides and amount of trailers

If we calculate for each day in July the total amount of rides and the amount of rides that departed at

the start of the day (i.e. the amount of trucks needed) and use a Pearson’s R correlation test, it is found

to have a significant correlation. The power of the relationship is 0,53, which indicates a strong positive

relationship. This is a good indicator that if more data about departure times would have been

available, the regression model would also be able to predict the resources needed instead of the rides.

It is therefore recommended to IDLV to keep collecting this data and when the sample size is large

enough, create a new regression model in the same fashion as done here. For now, even though it is

statistically incorrect, practical use of the regression model might be done by correcting with the

average fraction of resources over rides. For each day we can device the resources used by the total

amount of rides and take the average over the month of July. This number comes to 0,744. The

temporary practical model would now look like this:

𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑖𝑑𝑒𝑠 𝑛𝑒𝑒𝑑𝑒𝑑

= (26,204 − 2,759𝑀 − 1,556𝑊 − 3,612𝐹 − 8,822 ∗ 10−6𝐶11 + 3,013 ∗ 10−5𝐶15

− 1,302 ∗ 10−5𝐷10 + 4,999 ∗ 10−5𝐷15) ∗ 𝟎, 𝟕𝟒𝟒

3.4.4 Analysis of green indicators As has already been discussed, the road logistics industry is one of the biggest contributors to the

emissions of greenhouse gases. Efforts to reduce these contributions are made by governments

(Maastricht treaty, 1992) and companies themselves (lean and green, 2014). In the remainder of this

section, an overview of the efforts currently made by IDLV to reduce their carbon footprint is given.

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3.4.4.1 Kilometer per stop

With the use of board computers, IDLV can monitor fuel consumption per driven km of their own fleet.

Only a fraction of the rides that are orchestrated daily is done with owned trucks. IDLV has some trucks

and drivers on a flexible contract, to which board computers they not have access. Currently, these

numbers are weighed against the amount of addresses the truck has visited per km. The logic behind

this is that if a ride has had less distance in between stops, so relatively more stops, the ride has burned

more fuel per km. If this relation is found to be true, it can be used as a predictor for fuel consumption

when designing rides. Furthermore the company also actively monitors the fuel consumption rates and

reminds their drivers to keep it below certain benchmarks. So when the kilometers per stop are

calculated on average per month, these are used to interpret the average usage numbers per month

for certain drivers. The Pearson’s R test shows a correlation coefficient of 0,290, indicating a weak

positive relation between the usage and the distance between stops. This relationship follows intuition

as relatively more stops would mean less constant speeds, and higher fuel usage

DRIVER USAGE (LITER/KILOMETER) KM PER STOP

1 3,41 37,85

2 3,09 52,91

3 3,19 29,04

4 3,17 31,81

5 3,25 34,44

6 3,52 53,81

7 3,11 54,21

8 3,39 50,78

9 3,46 53,54

10 3,25 42,86

11 3,54 41,11

12 3,51 35,17

13 3,55 32,46

14 3,56 42,02

15 3,39 50,42

16 3,74 44,83

17 3,20 49,90

18 3,14 51,89

19 3,21 32,81

20 3,43 39,43

21 3,92 38,69

22 3,70 73,26 Table 8: Relationship shown between fuel consumption and kms per stop per driver, for the month of January 2015

3.4.4.2 CO2 emissions per truck

For the Benelux area, the owned fleet is categorized with year of build, the make name, type and

engine size in ccs. Each truck as a Euro norm classification which indicates the fuel consumption and

CO2 emission. Apart from this rather static data, each month the total CO2 emissions per vehicle are

calculated by multiplying fuel consumption with a factor 2,65. This is the factor commonly used to

measure CO2 emissions in kilograms, per liter diesel burnt. However when one wants to also include

other equally harmful gases, one can use the CO2e factor of 3,15. (Demir et al., 2013) For this factor,

the other gases have been scaled as their relative harmfulness with respect to CO2 and added to the

2,65 factor. Also the average emission per km, per vehicle, per month is then calculated. In section

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(9.1.6), an example is given on how these emission numbers are kept. For January 2015, the overall

average emission for the Benelux department was 0,77 kilograms per kilometer driven.

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Chapter 4: Mathematical modeling This chapter will answer the final sub-questions of the first two research questions, namely how

material restrictions and order details result in types of constraints and variables. The chapter explains

which variables and constraints are important for the tool that will be created. To make the model

applicable to other companies, some variables will be made generic. Following the logistic network

described in section 3.1.4, orders are translated into planning lines. A planning line contains a lot of

data, such as both pickup and delivery address, order quantity and weight, and vehicle requirements.

Other things such as time windows are momentarily not yet available in a unified format, but in string

form manually entered by employees. First of all, some general information about how VRPs are

modeled is given by describing some commonly used terms. Then the generic mathematical model is

given, representing a mixed integer linear programming problem.

4.1 General information on VRP models

Vertices

Vertices represent customer location. IDLV has information on whether a planning line is a pickup or a

delivery. When this is known, also the right address can be looked up, since per shipment more than

one addresses are available. The address is available in form of a combination of zipcode and country

code. A routing tool usually works with coordinates of vertices. To obtain coordinates in the form of

latitude and longitude, a web service needs to be used. The process of feeding an address to a server

and retrieving the coordinates is called geocoding. There are several servers who provide companies

or individuals with such a geocoding server, such as bing maps, google maps and open street maps

(.org). Besides the location of the vertex, other constraints or requirements can be coupled to a vertex

such as a time window in which the vertex must be visited, specific vehicle contraints (some locations

may only be visited with smaller vehicles).

Arcs

Arcs represent the distances between customers. A tour consisting of visiting certain vertices can be

measured in distance by adding up the arc between the customers. For a routing tool, a distance matrix

containing all possible arcs between customers is used as input. In this case, the arc describes either

the distance between the customers or the travel time. Distance can be measured in a straight line,

using the ‘crow flies’ principle, or by using available road data. The same goes for distance. In even

more complex situations, live traffic data can also be used. Apart from the arcs as input for a model,

they can also be used to describe the amount that is transported between customers.

Vehicles

Vehicles are the instances that travel over arcs and visit vertices. The vehicle is used to model

constraints such as capacity. The capacity can be set at a maximum, and then for each moment the

capacity utilization can be calculated to check the capacity restrictions. In more complex models,

capacity can be not just an integer, but consist of a bin packing problem. Also for each vehicle specific

parameters can be set such as speed, maximum working hours and starting time.

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4.2 Mixed integer linear programming problem

Indices

𝑃: 𝑆𝑒𝑡 𝑜𝑓 𝑝𝑖𝑐𝑘𝑢𝑝 𝑛𝑜𝑑𝑒𝑠, 𝑃 = {1,… , 𝑛}

𝐷: 𝑆𝑒𝑡 𝑜𝑓 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑦 𝑛𝑜𝑑𝑒𝑠, 𝐷 = {𝑛 + 1,… ,2𝑛}

𝑁: 𝑆𝑒𝑡 𝑜𝑓 𝑝𝑖𝑐𝑘𝑢𝑝 𝑎𝑛𝑑 𝑑𝑒𝑙𝑜𝑣𝑒𝑟𝑦 𝑛𝑜𝑑𝑒𝑠, 𝑁 = (𝑃 ∪ 𝐷)

𝐾: 𝑆𝑒𝑡 𝑜𝑓 𝑎𝑙𝑙 𝑣𝑒ℎ𝑖𝑐𝑙𝑒𝑠, 𝐾 = {1,… , 𝑘}

𝑀: 𝑆𝑒𝑡 𝑜𝑓 𝑠𝑡𝑎𝑟𝑡 𝑡𝑒𝑟𝑚𝑖𝑛𝑎𝑙𝑠 𝑜𝑓 𝑣𝑒ℎ𝑖𝑐𝑙𝑒𝑠,𝑀 = (𝑚1)

𝑀′: 𝑆𝑒𝑡 𝑜𝑓 𝑒𝑛𝑑 𝑡𝑒𝑟𝑚𝑖𝑛𝑎𝑙𝑠 𝑜𝑓 𝑣𝑒ℎ𝑖𝑐𝑙𝑒𝑠,𝑀′ = (𝑚′1 = 𝑚1)

𝑉: 𝑆𝑒𝑡 𝑜𝑓 𝑎𝑙𝑙 𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛𝑠, 𝑉 = (𝑁 ∪𝑀 ∪𝑀′)

𝐴: 𝑆𝑒𝑡 𝑜𝑓 𝑜𝑟𝑑𝑒𝑟𝑒𝑑 𝑝𝑎𝑖𝑟𝑠 𝑜𝑓 𝑛𝑜𝑑𝑒𝑠 (𝑖. 𝑒. , 𝑎𝑟𝑐𝑠), 𝐴 = {(𝑖, 𝑗): 𝑖, 𝑗 ∈ 𝑉, 𝑖 ≠ 𝑗}

𝐺:𝐴 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑒 𝑢𝑛𝑑𝑖𝑟𝑒𝑐𝑡𝑒𝑑 𝑔𝑟𝑎𝑝ℎ, 𝐺 = (𝑉, 𝐴)

𝑃𝑘: 𝑆𝑒𝑡 𝑜𝑓 𝑝𝑖𝑐𝑘𝑢𝑝 𝑛𝑜𝑑𝑒𝑠 𝑡ℎ𝑎𝑡 𝑐𝑎𝑛 𝑏𝑒 𝑠𝑒𝑟𝑣𝑖𝑐𝑒𝑑 𝑏𝑦 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘, 𝑃𝑘 = {1,… , 𝑛1} 𝑎𝑛𝑑 𝑛1 ≤ 𝑛

𝐷𝑘: 𝑆𝑒𝑡 𝑜𝑓 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑦 𝑛𝑜𝑑𝑒𝑠 𝑡ℎ𝑎𝑡 𝑐𝑎𝑛 𝑏𝑒 𝑠𝑒𝑟𝑣𝑖𝑐𝑒𝑑 𝑏𝑦 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘, 𝐷𝑘 = {1,… , 𝑛1} 𝑎𝑛𝑑 𝑛1 ≤ 𝑛

𝑁𝑘: 𝑆𝑒𝑡 𝑜𝑓 𝑝𝑖𝑐𝑘𝑢𝑝 𝑎𝑛𝑑 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑦 𝑛𝑜𝑑𝑒𝑠, 𝑁𝑘 = (𝑃𝑘 ∪ 𝐷𝑘)

𝐾𝑖: 𝑆𝑒𝑡 𝑜𝑓 𝑣𝑒ℎ𝑖𝑐𝑙𝑒𝑠 𝑡ℎ𝑎𝑡 𝑐𝑎𝑛 𝑠𝑒𝑟𝑣𝑒 𝑟𝑒𝑞𝑢𝑒𝑠𝑡 𝑖, 𝐾𝑖 = {1,… , 𝑘1} 𝑎𝑛𝑑 𝑘1 ≤ 𝑘

𝑉𝑘: 𝑆𝑒𝑡 𝑜𝑓 𝑎𝑙𝑙 𝑛𝑜𝑑𝑒𝑠 𝑡ℎ𝑎𝑡 𝑐𝑎𝑛 𝑏𝑒 𝑣𝑖𝑠𝑖𝑡𝑒𝑑 𝑏𝑦 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝐾, 𝑉𝑘 = ( 𝑁𝑘 ∪ 𝑀𝑘 ∪ 𝑀′𝑘)

𝐴𝑘: 𝑆𝑒𝑡 𝑜𝑓 𝑜𝑟𝑑𝑒𝑟𝑒𝑑 𝑝𝑎𝑖𝑟𝑠 𝑜𝑓 𝑛𝑜𝑑𝑒𝑠 𝑓𝑜𝑟 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘, 𝐴𝑘 = {(𝑖, 𝑗): 𝑖, 𝑗 ∈ 𝑉𝑘 , 𝑖 ≠ 𝑗}

𝐺𝑘: 𝐴 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑒 𝑢𝑛𝑑𝑖𝑟𝑒𝑐𝑡𝑒𝑑 𝑠𝑢𝑏𝑔𝑟𝑎𝑝ℎ, 𝐺𝑘 = (𝑉𝑘, 𝐴𝑘)

Parameters

𝑄𝑘: 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑜𝑓 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘 (𝑘 ∈ 𝐾)

𝑇1:𝑀𝑎𝑥𝑖𝑚𝑖𝑚 𝑑𝑟𝑖𝑣𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 𝑜𝑛 𝑎𝑛𝑦 𝑎𝑟𝑐 (𝑖, 𝑗) 𝑖𝑛 𝑚𝑖𝑛𝑢𝑡𝑒𝑠

𝑇2:𝑀𝑎𝑥𝑖𝑚𝑖𝑛 𝑟𝑜𝑢𝑡𝑒 𝑡𝑖𝑚𝑒 𝑖𝑛 𝑚𝑖𝑛𝑢𝑡𝑒𝑠

�̅�𝑟: 𝑅 𝑛𝑜𝑛𝑑𝑒𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 𝑠𝑝𝑒𝑒𝑑 𝑙𝑒𝑣𝑒𝑙𝑠 (𝑟 = 1,2,… , 𝑅)

𝑐𝑟: 𝑓𝑢𝑒𝑙 𝑐𝑜𝑠𝑡 𝑎𝑡 𝑎 𝑠𝑝𝑒𝑒𝑑 𝑙𝑒𝑣𝑒𝑙 𝑟 𝑝𝑒𝑟 𝑘𝑖𝑙𝑜𝑚𝑒𝑡𝑒𝑟 (𝑟 ∈ 𝑅)

𝑐𝑖𝑗𝑘 : 𝑜𝑡ℎ𝑒𝑟 𝑡𝑟𝑎𝑣𝑒𝑙 𝑟𝑒𝑙𝑎𝑡𝑒𝑑𝑐𝑜𝑠𝑡𝑠 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑛𝑜𝑑𝑒 𝑖 𝑎𝑛𝑑 𝑗 𝑢𝑠𝑖𝑛𝑔 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘 (𝑘 ∈ 𝐾, (𝑖, 𝑗) ∈ 𝐴)

𝑑𝑖𝑗: 𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑛𝑜𝑑𝑒𝑠 𝑖 𝑎𝑛𝑑 𝑗 (𝑖, 𝑗 ∈ 𝐴)

𝑙𝑖𝑗:𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑠𝑝𝑒𝑒𝑑 𝑙𝑒𝑣𝑒𝑙 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑛𝑜𝑑𝑒𝑠 𝑖 𝑎𝑛𝑑 𝑗𝑑

𝑎𝑖: 𝐴 𝑙𝑜𝑤𝑒𝑟 𝑏𝑜𝑢𝑛𝑑𝑜𝑛 𝑡ℎ𝑒 𝑡𝑖𝑚𝑒 𝑤𝑖𝑛𝑑𝑜𝑤 𝑜𝑓𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑖 (𝑖 ∈ 𝑉)

𝑏𝑖: 𝐴𝑛 𝑢𝑝𝑝𝑒𝑟 𝑏𝑜𝑢𝑛𝑑 𝑜𝑛 𝑡ℎ𝑒 𝑡𝑖𝑚𝑒 𝑤𝑖𝑛𝑑𝑜𝑤 𝑜𝑓 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑖 (𝑖 ∈ 𝑉)

𝑡𝑖: 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝑡𝑖𝑚𝑒 𝑜𝑓 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑖 (𝑖 ∈ 𝑃 ∪ 𝐷)

𝑞𝑖: 𝐴 𝑛𝑜𝑛𝑛𝑒𝑔𝑎𝑡𝑖𝑒 𝑑𝑒𝑚𝑎𝑛𝑑 𝑓𝑜𝑟 𝑒𝑣𝑒𝑟𝑦 𝑖 (𝑖 ∈ 𝑃)

Variables

𝑥𝑖𝑗𝑘 : 𝐴 𝑏𝑖𝑛𝑎𝑟𝑦 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑒𝑞𝑢𝑎𝑙 𝑡𝑜 1 𝑖𝑓 𝑎𝑟𝑐 (𝑖, 𝑗) 𝑖𝑠 𝑢𝑠𝑒𝑑 𝑏𝑦 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘 𝑎𝑛𝑑 0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒 (𝑘 ∈ 𝐾, (𝑖, 𝑗)

∈ 𝐴)

𝑆𝑗𝑘: 𝑇ℎ𝑒 𝑡𝑖𝑚𝑒 𝑎𝑡 𝑤ℎ𝑖𝑐ℎ 𝑠𝑒𝑟𝑣𝑖𝑐𝑒 𝑠𝑡𝑎𝑟𝑡𝑠 𝑎𝑡 𝑛𝑜𝑑𝑒 𝑗 𝑤𝑖𝑡ℎ 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘 (𝑘 ∈ 𝐾, 𝑗 ∈ 𝑉)

𝑂𝑗𝑘: 𝑇ℎ𝑒 𝑡𝑖𝑚𝑒𝑠𝑝𝑒𝑛𝑡 𝑜𝑛 𝑎𝑟𝑜𝑢𝑡𝑒 𝑡ℎ𝑎𝑡 ℎ𝑎𝑠 𝑎 𝑛𝑜𝑑𝑒 𝑗 𝑎𝑠 𝑙𝑎𝑠𝑡 𝑣𝑖𝑠𝑖𝑡𝑒𝑑 𝑏𝑒𝑓𝑜𝑟𝑒 𝑟𝑒𝑡𝑢𝑟𝑛𝑖𝑛𝑔 𝑡𝑜 𝑡ℎ𝑒 𝑑𝑒𝑝𝑜𝑡 𝑤𝑖𝑡ℎ 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘 (𝑘

∈ 𝐾, 𝑗 ∈ 𝑉)

𝐿𝑗𝑘: 𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑙𝑜𝑎𝑑 𝑎𝑡 𝑛𝑜𝑑𝑒 𝑗 𝑜𝑛 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑘 (𝑘 ∈ 𝐾, 𝑗 ∈ 𝑉)

𝑤𝑖𝑗𝑟 : 𝐴 𝑏𝑖𝑛𝑎𝑟𝑦 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑒𝑞𝑢𝑎𝑙 𝑡𝑜 1 𝑖𝑓 𝑎𝑟𝑐 (𝑖, 𝑗)𝑖𝑠 𝑡𝑟𝑎𝑣𝑒𝑟𝑠𝑒𝑑 𝑎𝑡 𝑎 𝑠𝑝𝑒𝑒𝑑 𝑙𝑒𝑣𝑒𝑙 𝑟 𝑎𝑛𝑑 0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒 ((𝑖, 𝑗)

∈ 𝐴, 𝑟 ∈ 𝑅)

An integer linear programming formulation is shown as follows:

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35

𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒:

{

∑𝑐𝑟𝑟∈𝑅

∑ 𝑑𝑖𝑗𝑤𝑖𝑗𝑟

𝑖,𝑗∈𝐴𝑘

+

∑ ∑ 𝑐𝑖𝑗𝑘𝑥𝑖𝑗

𝑘

𝑖,𝑗∈𝐴𝑘𝑘∈𝐾 }

(1)(2)

Subject to:

∑ ∑ 𝑥𝑖𝑗𝑘

𝑗∈𝑁𝑘𝑘∈𝐾

= 1, ∀𝑖 ∈ 𝑃 (3)

∑ ∑ 𝑥𝑖𝑗𝑘

𝑗∈𝑁𝑘𝑘∈𝐾

= 1, ∀𝑖 ∈ 𝐷 (4)

∑ 𝑥𝑚𝑘,𝑗𝑘 = 1 ∀𝑘 ∈ 𝐾

𝑗∈𝑁𝑘

(5)

∑ 𝑥𝑖,𝑚𝑘′𝑘 = 1 ∀𝑘 ∈ 𝐾

𝑖∈𝑁𝑘

(6)

∑ 𝑥𝑖𝑗𝑘

𝑖∈𝑉𝑘

− ∑ 𝑥𝑗𝑖𝑘

𝑖∈𝑉𝑘

= 0 ∀𝑘 ∈ 𝐾, ∀𝑗 ∈ 𝑁𝑘 (7)

𝑆𝑖𝑘 + 𝑡𝑖 +∑

𝑑𝑖𝑗𝑤𝑖𝑗𝑟

�̅�2𝑟∈𝑟

+𝑀𝑖𝑗𝑘 (1 − 𝑥𝑖𝑗

𝑘 ) ≤ 𝑆𝑗𝑘 ∀𝑘 ∈ 𝐾, ∀(𝑖, 𝑗) ∈ 𝐴𝑘 (8)

𝑎𝑖 ≤ 𝑆𝑖𝑘 ≤ 𝑏𝑖 ∀𝑘 ∈ 𝐾, ∀𝑖 ∈ 𝑉𝑘 (9)

𝑆𝑗𝑘 + 𝑡𝑖 +∑

𝑑𝑗0𝑤𝑗0𝑟

�̅�2𝑟∈𝑟

− 𝐹(1 − 𝑥𝑗0𝑘 ) ≤ 𝑂𝑗

𝑘 ∀𝑘 ∈ 𝐾, ∀𝑗 ∈ 𝐴𝑘 (10)

𝐿𝑖𝑘 + 𝑞𝑖 +𝑊𝑖𝑗

𝑘(1 − 𝑥𝑖𝑗𝑘 ) ≤ 𝐿𝑗

𝑘 ∀𝑘 ∈ 𝐾, ∀(𝑖, 𝑗) ∈ 𝐴𝑘 (11)

𝐿𝑖𝑘 ≤ 𝑄𝑘 ∀𝑘 ∈ 𝐾, ∀𝑖 ∈ 𝑉𝑘 (12)

∑𝑑𝑖𝑗𝑤𝑖𝑗

𝑟

�̅�2𝑟∈𝑅

≤ 𝑇1 ∀𝑘 ∈ 𝐾, ∀(𝑖, 𝑗) ∈ 𝐴 (13)

𝑂𝑗𝑘 ≤ 𝑇2 ∀𝑘 ∈ 𝐾, ∀𝑗 ∈ 𝐴 (14)

𝑥𝑖𝑗𝑘 ∈ {0,1} ∀𝑘 ∈ 𝐾, ∀(𝑖, 𝑗) ∈ 𝐴 (15)

𝑊𝑖𝑗𝑘 ∈ {0,1} ∀(𝑖, 𝑗) ∈ 𝐴, 𝑟 = 1,… , 𝑅 (16)

𝑆𝑖𝑘; 𝐿𝑖

𝑘; 𝑂𝑖𝑘 ≥ 0 ∀𝑘 ∈ 𝐾, ∀𝑖 ∈ 𝑉𝑘 (17)

The objective function, which consists of function (1) and (2), minimizes the total costs associated with

the routing of the vehicles. The first component entails the speed-related costs, where the second

looks at other travel related costs. Constraint (3) states that each of the pickup locations needs to be

visited, where constraint (4) states that all of the delivery locations need to be visited.

Constraints (5)–(7) ensure that each vehicle k starts from its start depot and terminates its route at its

terminal depot. Constraints, (8), (10) and (11) are linearized as in Cordeau (2006). Constraint (8), where

𝑀𝑖𝑗𝑘 = max {0, 𝑏𝑖 + 𝑡𝑖 +

𝑑𝑖𝑗

𝑙𝑖𝑗− 𝑎𝑗} enfores the time window restrictions. We also assume 𝑡𝑖,𝑛+1 + 𝑡𝑖 >

0. Constraints (10), where F is a large number, also enforce the time-window restrictions. The time

between nodes i and j also holds the triangular inequality: 𝑡𝑖𝑗 ≤ 𝑡𝑖𝑙 + 𝑡𝑙𝑗 for all 𝑖, 𝑗, 𝑙 ∈ 𝑉.Constraints

(11) and (12) are the load constrants, where 𝑊𝑖𝑗𝑘 = min {𝑄𝑘, 𝑄𝑘 + 𝑞}. Constraints (13) ensure that the

drving time between nodes i and j must be less than the maximum driving time between arcs.

Constraints (14) ensure that the total route time must be less than the allowed total time. For the

development of this mathematical model, the work of Demir et al. (2014b) was used.

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Chapter 5: Development of decision support model For the development of the decision support model, first a look at alternatives is made. We distinguish

between communities, applications and engines. These are somewhat ranked from broadest to

narrowest concept of vehicle routing tools. Communities consist of researchers or practitioners who

share interest and aim to come to new understandings. That said, communities might very well

develop applications or engines. Applications are in this setting defined as total packages that can be

used by practitioners to solve instances of the vehicle routing problem. Engines are defined as the

building blocks of which applications consist. This may therefore be the shell in which a piece of code

runs, a web service for geocoding, or the actual code that solves instances of the VRP.

After a look at alternatives is made, a starting point is chosen from which the tailor made model for

the case at IDLV will be made. When choosing a starting point we need to focus on the degree to which

it can be used by IDLV when implementing, the degree to which it can be altered, and the degree to

which its quality can be assessed by assessors.

In the final stage, step by step the starting point is expanded until it can solve practical cases at IDLV

as close to the reality as possible.

5.1 Comparing alternatives To start with developing a routing tool, it suits to check around for solutions that are already

developed. Many research has been done about the vehicle routing problem, and around this research

communities have developed. In these communities, research insights are shared between researchers

or practitioners. Furthermore we distinguish between applications that can autonomously solve

instances of the vehicle routing problem, and engines or web services. These engines or web services

are either pieces of code that can be used to solve instances of the vehicle routing problem together

with an application, or services needed to prepare input or output for an application to work better.

5.1.1 Communities

5.1.1.1 Verolog

The European working group on vehicle routing and logistics optimization (VeRoLog) and its

community are focused on active research in vehicle routing problems. The purpose of this working

group is to constitute a reference point for the research community in order to deepen the knowledge

in vehicle routing problems, develop tools to solve instances of the vehicle routing problem and to be

a place where researchers and practitioners can share their knowledge.

5.1.2 Applications

5.1.2.1 ODL Studio

ODL Studio is an open source program supplied by a small UK-based firm. The firm aims to provide

open source solutions for transport logistics, particularly those requiring modern computational

intelligence techniques. Even though the aim of this company is to provide free solutions with their

open source application, they offer consulting at an hourly rate to tailor fit the application to

practitioner’s needs. The ODL studio also uses the open source engine JSPRIT. For the distance matrices

and mapping, ODL uses a file from GraphHopper. The geocoding is done using a database file that can

couple zip codes to coordinates. The application can thus function as a shell where the user loads an

engine and certain databases, sets constraints and is then able to solve instances of the vehicle routing

problem. However these tasks are not easily performed and require IT expertise. Unfortunately this

makes the application not as accessible to practitioners as may have been meant.

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5.1.2.2 G. Erdoğan’s VRP Solver

Dr. G. Erdoğan is an associate professor at University of Bath and active member of the VeRoLog

community. His interest is in researching quality solutions for vehicle routing problems, airline

management and ambulance location problems. As an active member of the VeRoLog community, dr.

Erdogan shares the beliefs for a need for an open platform for researchers to share knowledge about

vehicle routing problems. To this end, he has developed an open source vehicle routing tool he names

the VRP Solver. The VRP solver solves instances of the vehicle routing problem with time windows and

uses the Bing API service for geocoding and distance matrix calculation. By choosing for an Excel VBA

script based solver, Dr. Erdogan makes the logic behind the code understandable to most practitioners

and readers, and also easily extended into different applications. In contrast to ODL Studio, this

application is very accessible to practitioners and students. With great accessibility, understandability

and flexibility for which Excel VBA is known, unfortunately also issues arise. The programming style

adopted in this application is called object-oriented programming. For this style of coding, the more

classical C++ programming language is known to be able to run significantly faster (Kimme, 2003).

5.1.2.3 PTV Group’s xTour

The PTV Group’s xTour is an application that consists of several modules. PTV Group started as a

company that provided a tracking service for trucks. From this, it has grown to a large software

developer that offers software for a large scale of logistics purposes, such as mapping, geocoding,

tracking and routing services. The xServer is an application, or more a package, that consists of multiple

modules. By selecting the modules they need, PTV Group’s customers can build the perfect logistics

software for their company’s needs. The modules will be handled in section (5.1.3.5). The main idea is

that the xTour serves an application for planners to work with, however. PTV Group has well

researched and developed products and is therefore a reliable partner for logistics service providers

to cooperate with. The results of the application, as a result of the thorough development, are

supposed to be very good. Supposedly however, the reliability and quality of PTV Group’s products

might come with a high price tag.

5.1.3 Engines and web services

5.1.3.1 JSPRIT Engine

JSPRIT is a GitHub (a platform for developers to share and co-develop code) project where experts aim

to develop heuristics that can solve benchmark instances of the vehicle routing problem. It can

therefore also be seen as a community, but since some applications such as ODL studio use JSPRIT’s

engine, we shall address it as an engine here as well. The engine works in Java and aims to solve

benchmark instances of the VRP. When for some benchmark instances problems arise, the community

aims to codevelop betters heuristics, this way the JSPRIT engine keeps getting better. Since the engine

is Java based, it is possible for people to adapt it to their own application. ODL Studio (5.1.2.1) for

example also runs on the JSPRIT engine. Supposedly integrating the engine with an application takes

some tailoring and specialist programming skills, but when one possesses these skills it can be very

rewarding to implement the JSPRIT engine.

5.1.3.2 Graphhopper

GraphHopper is a young, Germany-based firm that specializes in mapping solutions. It uses the

OpenStreetMaps maps to provide services such as geocoding, distance matrix calculation and even

solving instances of the vehicle routing problem as a web service. For the batch matrix calculation,

customers can post a request and using HTTP style requests, can obtain the distance matrix a few

instances later. These services are offered at a monthly price, depending on the size of the requests.

Graphhopper is also currently looking into online services that can solve VRP instances for customers.

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5.1.3.3 Openstreetmaps

Openstreetmaps is a project started in Germany that focuses on distributing free geographic data over

the world. There are other geographic data sources such as google and bing, but the use of their

services is rarely 100% free, since technical or legal restrictions exist. This was the incentive for the

project to start. Openstreetmaps aims to be 100% free without restrictions, so that people can also

use the underlying geographical data of maps, such as geocoding. Openstreetmaps is still expanding

their data by contributions and user surveys.

5.1.3.4 Google and Bing APIs

Google and Bing have a vast knowledge of geographical data and allow for individual developers and

corporate to use this underlying in the form of APIs. An API is an Application Programming Interface,

which means a set of definitions which allows applications or programs to communicate with other

programs or services. In this sense, a web API allows for a program to communicate with the web

service, for example post requests and fetch responses. So for an application to need some sort of data

transformation, for example geocoding, where an address string is converted into coordinates, a web

API can be used. This and other mapping services are offered by Google Maps as well as by Bing Maps.

They invite developers to use the APIs and there is well documented information on how to use the

APIs. For small instances or requests, this service is free. However if the service is to be used on a bigger

scale, for commercial purposes the companies might require a fee. To safeguard for someone taking

advantage of these services, there are some user limits that Google and Bing use per IP-address. Limits

cover the times between requests as well as an absolute amount of requests that may be done per IP-

address per day.

5.1.3.5 PTV xServer modules

Basically the PTV modules operate the same way as APIs, in the sense that they also act out a certain

request that is needed for the total routing task of a company. There are some differences however.

The main thing is that when a customer chooses to use a module, they are not posting requests to a

server, but they are more buying the knowledge. In many cases some kind of server or module is

installed at a PTV Group customer. Arguably this guards data-safety for companies a lot better. The

downside is that such a module then immediately also becomes more expensive. Because modules are

installed and knowledge is more or less bought/rented, there also exists little possibilities for

companies to trial the modules. With the web API services developers can set up their code, set up the

interaction and run small use cases to trial the service. If the service is to their liking, a professional

license can be bought to run larger instances at faster speeds. With PTV Group there still is an option

to test the modules to some degree, but the threshold is arguably higher. However together with data-

safety it is also commonly understood that the PTV Group modules are of very high quality.

5.2 VRP-model As described in section 5.1.2.2, the application by Dr. G. Erdoğan is used as a starting point for the

tailor made model. It is chosen because the programming language VBA is fairly simple to understand,

its shell (MS Excel) has an easy and well documented interface to communicate with other programs,

and results are easily documented. In the table (9) below we can see what types of functionalities were

in the original solver, versus the functionalities that were added. In the remainder of section 5.2,

stepwise these functionalities are added. For a screenshot of the original VRP Solver’s console

worksheet, we urge the reader to have a look at appendix (9.1.8).

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FEATURE IN ORIGINAL SOLVER

IN REVISED SOLVER

TIME WINDOWS ✓ ✓ PICKUPS ✓ ✓ DELIVERIES ✓ ✓ MIXED BACKHAULS (+ VISUALIZATION) X ✓ TAILGATE REQUIREMENTS (+ VISUALIZATION) X ✓ HV/HR REQUIREMENTS (+ VISUALIZATION) X ✓ TAILORED HEURISTIC TO ENSURE TAILGATE AND HVHR REQUIREMENTS

X ✓

MAXIMUM STOPS PER ROUTE X ✓ SAFETY PERCENTAGE FOR VEHICLE CAPACITY X ✓ ADDRESS CONSOLIDATION - PLANNING LINE REDUCTION X ✓ EMISSION MINIMIZATION AND CALCULATION X ✓ LOADING FACTOR CALCULATION X ✓

Table 9: Overview about added features in the revised solver

Load preferences and

customer locations

Construct solution

Improve solution

Evaluate solution

Evaluate route

As long as timer runs

Print solutionTimer ends

Figure 12: Schematic overview of how the solution data construct flows within the VRP Solver

5.2.1 Revised VRP-model with Mixed Backhauls (MB) For a pure pickup or pure delivery problem, the capacity constraints that need to be met can simply

be calculated as an accumulation of the quantities required by customers visited. When a new order

is considered to be added to an existing route, it suffices to check if the total capacity of the vehicle is

met or not. This makes the evaluation of a route very easy and therefore also the heuristic fast. Below

both the capacity calculation method and the decision process for adding another vertex to the route

is shown. Once this fairly simple mathematical logic is shown we can show how complexity increases

when taking mixed backhauls into account.

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Depot

APickup 2

BPickup 3

CPickup 1

DPickup 5

EPickup 2

(0;A) Carrying: 0

(A:B) Carrying 2

(B;C) Carrying 5 (C;D) Carrying: 6

(D;E) Carrying: 11

(E;0) Carrying: 13

0

2

4

6

8

10

12

14

(0;A) (A;B) (B;C) (C;D) (D;E) (E;0)

Vehicle load

Depot

A

B

C

D

E

Depot

ADeliver/pickup 2

BDeliver/pickup 3

CDeliver/pickup 1

DDeliver/pickup 5

EDeliver/pickup 2

(E) + (A,B,C,D) exceeds vehicle

capacity

(E) + (A,B,C,D) fits within

vehicle capacity

Figure 13: Calculating capacity requirements Figure 14: Decision process for adding new vertex

As can be seen in the examples above, capacity requirements are simply an accumulation of the

quantities that need to be delivered or picked up. For pickups, the same logic applies but the vehicle

starts with a full truck and delivers everything along the route. Note here, that the order in which

customers are visited is not a factor in deciding if capacity requirements are met. From figure (13) we

learn that the maximum capacity carried in the vehicle is 13 loading units, which is equal to the sum of

all the locations’ amounts. This also becomes clear in Figure (14) where the insertion of vertex E could

very well be between any of the other vertices, and the same type of calculation would have needed

to be made.

For mixed backhauls, the order in which customers are within a route is more important, since load

carried on certain arcs other than the first or final one represent the maximum carried load. To

calculate this load, for each different arc also the amount carried needs to be calculated as in figure

(15). Now, the vehicle starts with the sum the load of the delivery orders.

Depot

APickup 5

BDeliver 3

CPickup 2

DPickup 3

EDeliver 5

(0;A) Carrying: ∑Deliveries= 8

(A;B) Carrying: (0;A) + P(A)= 8+5=13

(A;B) Carrying: (A;B)-D(B)= 13-3=10

(C;D) Carrying: (B;C) + P(C)=10+2=12

(D;E) Carrying: (C;D) + P(D)=12+3=15

(E;0) Carrying: (D;E) - D(5)=15-5=10

0

2

4

6

8

10

12

14

16

(0;A) (A;B) (B;C) (C;D) (D;E) (E;0)

Vehicle load

Figure 15: Calculating capacity requirements for mixed backhauls

As can be seen in figure (15), the vehicle load changes over time and the maximum load is realized

somewhere between customer visits. In the example, the load transported on the previous arc is used

to calculate the load on the concerning arc. It becomes clear that the order in which customers are

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41

visited is necessary to calculate if capacity requirements are met. The order of customer visits also has

implications for the decision process when adding new vertices to an existing route.

Depot

APickup 5

BDeliver 3

CPickup 2

DPickup 3

EDeliver 5

(E) + (0;A) OR(E) + (A;B) OR(E) + (B;C) OR(E) + (C;D) OR

(D;E)Exceeds vehicle capacity

(E) + (0;A) Fits AND(E) + (A;B) Fits AND(E) + (B;C) Fits AND(E) + (C;D) Fits AND

(D;E) Fitswithin vehicle capacity

Figure 16: Decision process for adding new vertex to a MB route

When a decision needs to be made regarding new vertices, the load on all of the arcs needs to

recalcutated to ensure feasibility. In the original situation a route is evaluated by a function that checks

multiple aspects as well as a capacity check. The capacity check originally looked something like this in

pseudocode (in case of a pickup problem):

Set Carried load at 0

Set Capacity at x

FOR each vertex visited in the route:

Add the amount to be picked up at this vertex to the carried

load

NEXT vertex visited in the route

IF carried load > capacity

The route is infeasible

Penalize the route by (carried load-capacity)/capacity

End if

As can be seen, this only needs one loop, where a summation is made to see if the route exceeds

vehicle capacity. Now we can extend this logic to the situation in which mixed backhauls are allowed.

Note that now for each vertex not just the load is expected to be known, but both a pickup load and a

delivery load.

Set total distribution load at 0

Set capacity at x

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42

Set maximum load at 0

FOR each vertex visited in the route:

If the vertex is a delivery address:

Add the amount to be delivered at this vertex to the

total distribution load

End if

NEXT vertex visited in the route

Now the total amount to be distributed is known. This is the load transported from the depot to the

first customer, thus the load on the first arc. Next we can calculate for each of the arcs the loads

transported, update the maximum load variable, in order to be able to do the capacity check.

Set load at vertex() at 0

FOR each vertex i visited in the route:

If this is the first vertex:

Load at vertex(i) = total distribution load –

distribution load this vertex + collection load this

vertex

If load at vertex(i) > maximum load:

Maximum load = load at vertex(i)

End if

End if

If this is not the first vertex:

Load at vertex(i) = load at vertex (i-1) – distribution

load this vertex + collection load this vertex

If load at vertex(i) > maximum load:

Maximum load = load at vertex(i)

End if

End if

NEXT vertex visited in the route

If maximum load > capacity

The route is infeasible

Penalize the route by (maximum load-capacity)/capacity

End if

5.2.2 Revised VRPMB-model with true fleet heterogeneity In some cases as well as the case with the solver model by G. Erdogan (2014), heterogeneity in vehicles

is treated in the following way. Different types of vehicles have their own parameters, such as costs

and capacities. In the solver model by G. Erdogan (2014), vehicle types may differ on the following

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43

aspects: capacity, fixed cost per trip and cost per unit distance. Here it becomes clear that this is

intended for when a fleet consists of vehicles of different size, age or cost (for example, rented vehicles

are more expensive than owned vehicles). In a case where some customer locations may only be visited

with a certain type of vehicle, this type of fleet heterogeneity sufficient to model reality. This is the

case at IDLV, where apart from these location-related constraints, also order-related constraints may

require specific vehicle types. Here, some types of orders can be transported in all vehicles, while some

only with one type of vehicle. To avoid confusion a table is given below

Orders may have location-related constraints (L) and/or order-related constraints (O). All orders ={𝐿 ∪

𝑂}. This means that orders can have no constraints, only location-related constraints, only order-

related constraints or both constraints.

Vehicles may be able to transport orders with location-related constraint L (LC) and/or order-related

constraints (OC). All vehicles ={𝐿𝐶 ∪ 𝑂𝐶}. This makes it so that there are four types of vehicles, one

that cannot transport orders with specific constraints, one type that can transport orders with location-

related constraints, one that can transport only order with order-related constraints and one type that

can transport both.

ORDER/VEHICLE NO SPECIFICATIONS LC OC LC + OC

NO CONSTRAINTS ✓ ✓ ✓ ✓ L X ✓ X ✓ O X X ✓ ✓ L + O X X X ✓

Table 10: overview of possible constraints that an order can have versus the ones a vehicle can carry

As can be seen, orders without constraints can be transported in any type of vehicle, and vehicles that

have all possible specifications can transport all orders. Integrating this into the model consists of three

steps:

1. Setting vehicle specifications

2. Setting order constraints

3. Allowing the heuristic to check if orders are coupled to the right vehicle

4. Speeding up the heuristic to not propose changes that are not allowed (section 5.2.2)

For step 3, an excerpt from the pseudocode for checking if a route has orders assigned to it that are

now allowed is given below:

FOR each vertex visited in the route:

IF the vertex has constraint L AND if the vehicle does not have

specification LC THEN

Route is infeasible

Increase L-related infeasibility by 1

END IF

IF the vertex has constraint O AND if the vehicle does not have

specification OC THEN

Route is infeasible

Increase O-related infeasibility by 1

END IF

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NEXT vertex visited in the route

Penalize the route by the amount of L-related infeasibilities

Penalize the route by the amount of O-related infeasibilities

5.2.2 Revised HFVRPMB-model with faster LNS heuristic The way the different operators of the LNS heuristic work, is that in nested loops, either for one route

or for one vertex, an iteration through all the other routes is or vertices is made to see if some details

can be exchanged. When such an alternation is made, an evaluation is made to assess the associated

differences in total costs and distances traveled. Also, some feasibility checks are made to see if for

example capacity constraints are violated. Everything is weighed and it can be decided to keep the

‘best’ of the two options. For capacity, cost and time window checks, it makes sense to use a separate

procedure because of the complexity that comes with calculating these kinds of route feasibilities. As

described in section 5.2.2, these checks have already been added to the evaluation procedure.

However from a computational point of view, it makes no sense to add an order that has certain

constraints, to a vehicle that cannot transport these goods, only to have a separate procedure decide

that this alternation has made the route infeasible. Therefore it makes sense to only allow mutations

that do not exceed the HV/HR constraints as well as the tailgate constraints. Other theories state that

an unbounded heuristic allows for more ‘creative’ steps, and that thus in the end a better feasible

solution may be achieved, even though the temporary solutions may be infeasible. For our case, both

these assumptions will be tested in section 6.1 with a computational study. However we note that for

IDLV the success factors are time and feasibility. When keeping in mind that the planning department

will still perform alterations to a proposed solution, it makes sense to go for a bounded algorithm to

come to feasible solutions quickly.

This issue is solved fairly simply in three steps. First we must determine if vehicles or vertices are

exchanged. Once this is known, a skip function is built. In the case of a vertex, the route to which it

may be added may only be one that fits the specific needs of the vertex. First a simplified version of

an operator is given

First loop: for each vehicle

First loop: for each vertex in vehicle

Second loop: for each vehicle (start at vehicle from

first loop + 1)

Second loop: for each vertex in vehicle

Switch vertex from first loop with the one from

second loop

Evaluate changes

Next

Next

Next

Next

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Now we can show the faster version

First loop: for each vehicle i

First loop: for each vertex in vehicle j

Second loop: for each vehicle (start at vehicle from

first loop + 1) k

IF vertex j needs a tailgate and vehicle k has no

tailgate: go to SKIP

IF vertex j needs a HVHR trailer and vehicle k has no

HVHR trailer: go to SKIP

Second loop: for each vertex in vehicle l

Switch vertex from first loop with the one from

second loop

Evaluate changes

Next l

SKIP:

Next k

Next j

Next i

5.3 Revised HFVRPMB-model with green extension (G-HFVRPMB) In the original model, cost and distance are minimized. However with mixed backhauls, instead of load

increasing non-decreasingly with pure pickups or load decreasing non-increasingly with pure

deliveries, the load varies on each arc within the route. This means that when minimizing the distance,

this results in arbitrary load-factors over the arcs. In the heuristic there is already a safeguard to make

sure no capacity constraints are violated, but that is the most that is done with respect to load factor.

Now that load factors are already calculated in terms of taking up trailer space, this can be extended

to weight related load factors. Once weight load factors are known, it can be calculated how these

affect fuel consumption and the emission of unwanted greenhouse gases.

IDLV mainly drives Volvo trucks. In their latest publishing about truck specifications, Volvo has stated

that for distribution traffic, their trucks use on average 22.5 liters of diesel when empty, and 27.5 liters

when fully loaded, per 100km driven. For 1 liter of diesel burnt, it is known that approximately 2.6

kilograms of CO2 are emitted, and 3,15 kilograms of CO2e (Demir et al., 2014a). With these numbers it

is quickly calculated that an empty Volvo truck emits about 0.585 kilogram per kilometer driven,

whereas when the truck is full about 0.715 kilograms of CO2 are emitted. Now if we want to use this

information to calculate emissions, we can assume a ‘base’ emission of 0.585 kilograms CO2 per driven

kilometer. Then we can correct for each arc the load factor multiplied with the surplus emission of a

fully loaded truck (0.13 kilograms CO2). Afterwards, since the relation between CO2 and CO2e is linear,

we can also recalculate the CO2e emissions by correcting the factors with 2,6

3,15.

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The equation becomes as follows:

Emission to be reduced:

𝐶𝑂2𝑒(𝑘𝑔) =∑𝑥𝑖𝑗 ∗ 𝑒𝑚𝑝𝑡𝑦 𝐶𝑂2𝑒 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛/𝑘𝑚

𝑛

𝑖=𝑜

+∑𝑙𝑓𝑖𝑗 ∗ 𝑥𝑖𝑗 ∗ 𝑠𝑢𝑟𝑝𝑙𝑢𝑠 𝐶𝑂2 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛/𝑘𝑚

𝑛

𝑖=𝑜

𝐶𝑂2(𝑘𝑔) =∑𝑥𝑖𝑗 ∗ 0.585 ∗2,6

3,15

𝑛

𝑖=𝑜

+∑𝑙𝑓𝑖𝑗 ∗ 𝑥𝑖𝑗 ∗ 0.13 ∗2,6

3,15

𝑛

𝑖=𝑜

5.5 Revised geocoding and distance matrix In the available data, zipcodes and country codes are available. As described before, the process

converting address strings to coordinates is called geocoding. The original model uses the web API

from bing. However some research finds that the geocoding API from google generates better results,

in faster times, and can handle more instances per day. Therefore, another geocoding system is used.

The Google API allows for more requests, thus speeding up the code.

For the model to work, a distance matrix that contains all possible distances between the set of

customer locations is needed. There are multiple ways of calculating this matrix. One can calculate the

direct ‘crow flies’ distance using formulas, or when geographical data about road maps is available one

may use this for a distance matrix more close to reality. Also, instead of distances, travel times may be

used. If one wants to use road mapping data, the option exists to use a module or a web API service,

as explained before. For the purpose of this thesis, it does not make sense to buy a module, so there

is looked into web API services. Again, within the web API services, two options exist. One can use a

directions API, to get directions between two points and filter for the total distance or duration. This

way, all the entries for the matrix have to be requested one by one. This is the way the original tool

was organized. This is a fairly simply operation and works fast enough when the amount of customers

is low. However since the matrix has n2 entries, where n is the number of customers, the numbers

grow exponentially and with 300 customers, 90.000 single requests will take a long time, and might

overflow the request limit.

The other option is called a batch distance matrix API, where the user posts all addresses and a matrix

is fed back. These require a bit more code to be set up, but improve the overall quality and

sustainability of the tool. Please note that this extension will cost money. However the code for the

batch distance matrix API by Graphopper is chosen to be set up, to show IDLBV how such requests

work. In the future then the implementation of such a component can be made simple.

Please note that the proposed final model does not yet support these batch style requests due to data

safety concerns and the fact that these larger request require a monthly fee. However the code works

and is implementable in the future. As stated before, Graphhopper is a young company and therefore

their documentation is not that advanced. The code developed to work from excel is also shared with

them and will also be used for customer support.

5.6 Discussion After all extensions have been dealt with, we can verbally give an impression about the purpose of this

tool. The main differences in functionalities added in this chapter can be seen by comparing the

console worksheet of the original solver (9.1.8) with the console worksheet of the updated solver

(9.1.9).

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47

This tool can convert source data from planning lines to coordinates with specific information about

how much to pick up or deliver, when and with what type of vehicle. After this, our tool can minimize

either the distance driven needed to visit all customers, or the emission used to visit all customers. The

tool works with penalty costs for crossing constraints and also has hard constraints that cannot be

crossed. Together with penalty costs and profits a cost function is used.

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Chapter 6: Computational studies Four sets of case studies will be performed. The first case study aims to show the effects of altering

the algorithm to create better efficiency. The unaltered and altered version are compared. The second

case study looks at the different operators of the algorithm and how they behave with different

amount of customers, to check for diversificating or intensificating effects. The term diversification

refers to the ability of a heuristic or operator to visit many regions of the search space, where the term

intensification refers to the ability of an operator or heuristic to obtain high quality solutions in a

certain region (Lozanoa, García-Martínez, 2009). In the third case study, the objective function is

changed from a combination of cost and distance minimization, to a combination of cost and emission

minimization. Finally, a comparison between the results from the planning department and the solver

are compared in a real life case. This final case study will be presented in chapter 7. Throughout the

case studies, multiple quality indicators are used: infeasibilities, iteration lengths, amount of iterations

within the given time, profit, distance driven and CO2e emission. Please note that for the profit quality

indicator, this is only dependent on the amount of orders delivered versus the distance driven. The

load factors and their implications on fuel consumption are not considered. Also, each order is assigned

a ‘profit’ of 100 cost units, to ensure that each order is delivered.

For the source data, actual planning lines from the Benelux department are used. We have two sets of

data, the first dataset is based on shipments that needed collection or distribution on 15-6-2015, we

shall call this dataset A. The second set is of the shipments that needed collection or distribution on 1-

7-2015, henceforth referred as dataset B. Within these datasets, we generate smaller instances to test

the proposed changes. For each set, we select the first N customers, and thus create dataset A-N or B-

N. So, the first 50 customers of the shipments to be executed on 1-7-2015 are referred to as B-50.

Set A has 283 customer locations after consolidation, set B has 313 customer locations after

consolidation. Below we show the entire datasets for A and B. Customer locations for A-50 through A-

250 and B-50 through B-300 can be found in appendices (9.1.6) and (9.1.7).

Figure 17: Customer locations for dataset A. The red dots indicate a HV/HR shipment.

0,

-0,45

-10, LK-5,5, B-13,6, B

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-3,75-4,05

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-2,0331,1

0,4, LK

-0,4-0,417

13,6, A

-4,2-1,2

2 -0,5-1

-1-0,40,5

-3

-2,173

-0,5

-0,4

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0,8

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-1-1-1

-3,348, B

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0,5

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12,8, D2,40,4

2

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1,6580,531

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4

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1

0,2

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1,5

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1

1,5

3

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1

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0,4 121,44113,6

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1,215, E0,20,951,1

9,2

7,61,24,81,152,50,230,41,203

5,45, D13, D

0,577, E

0

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1,5341,20,3528,4

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4,4

0,139, E

0,4

2,8341,20,8

2

0,7

3,75, D

0,5, B

2,80,1730,253

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Figure 18: Customer locations for dataset B. The red dots indicate a HV/HR shipment.

6.1 Computational study: Faster LNS heuristic analysis First of all, the LNS algorithm has been altered to only allow for an alternation to be made to the

solution if that step still ensues feasibility. The aim has been to ensure fast converging to a feasible

final solution, but critics pose that some algorithms need to run more freely (so also into infeasible

solutions) to finally come to a better solution (which then arguably will be feasible again). To test how

the altered, or ‘cramped’ algorithm and the original behave, they can be monitored in a case study.

The reason for an altered algorithm is so that the algorithm speed can increase, and feasible solutions

can be attained as early as possible.

6.1.1 Description of case To measure the difference in speed, one LNS iteration can be measured in both the altered and

unaltered way. We measure the duration of 1 iteration for multiple numbers of customers, for both

the bounded and unbounded heuristic. To measure the differences in outcome, also both the bounded

and unbounded heuristics are ran for multiple sets of customer numbers. We will keep track of

multiple performance indicators: profit, total distance traversed and CO2-emission.

01

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6.1.2 Case study results

6.1.2.1 Iteration lengths

N A B

Revised heuristic Original heuristic Revised heuristic Original heuristic 50 6.46 6.73 5.71 5.83 100 46.84 47.25 37.05 38.12 150 120.16 120.32 202.84 204.17 200 >2hrs >2hrs > 2hrs > 2hrs 250 >2hrs >2hrs > 2hrs > 2hrs 300 - - > 2hrs > 2hrs

Table 11: results for datasets A-50 through A-250 and B-50 through B-300, length of one iteration in seconds

6.1.2.2 Profits

N A B

Revised heuristic Original heuristic Revised heuristic Original heuristic 50 6,046.43 6,137.97 3,506.01 3,652.55 100 7,772.59 7,772.59 7,239.47 7,239.60 150 13,279.54 13,297.54 23,613.95 23,401.16 200 14,123.36 13,919.01 28,036.15 27,859.67 250 23,512.75 23,552.80 69,577.40 69,844.66 300 - - 112,613.34 113,464.47

Table 12: results for datasets A-50 through A-250 and B-50 through B-300, profits after running for 5 minutes

6.1.2.3 Distances

N A B

Revised heuristic Original heuristic Revised heuristic Original heuristic 50 4,812.02 4,720.48 3,282.47 3,135.92 100 7,196.43 7,196.43 6,503.56 6,503.43 150 8,085.76 8,085.76 8,365.63 8,578.43 200 10,983.61 11,187.96 11,940.90 12,117.37 250 12,965.88 12,925.82 13,335.14 13,065.88 300 - - 12,993.19 12,152.06

Table 13: results for datasets A-50 through A-250 and B-50 through B-300, Distances in kilometers after running for 5 minutes

6.1.2.4 CO2e emissions

N A B

Revised heuristic Original heuristic Revised heuristic Original heuristic 50 2,224.96 2,141.71 1,591.88 1,627.55 100 3,681.52 3,681.52 3,155.23 3,156.97 150 4,381.70 4,381.70 4,296.01 4,440.67 200 5,864.54 7,964.79 6,302.19 6,316.74 250 7,117.29 7,088.76 7,088.18 6,831.03 300 - - 6,741.96 6,387.33

Table 14: results for datasets A-50 through A-250 and B-50 through B-300, CO2e emissions in kilograms after running for 5 minutes

What we see is that in terms of heuristic speed, even though the revised one is faster, this difference

is negligible. When we check for the quality with multiple amounts of customers, we see that for the

amount of customer from 50 to 150, the quality of the revised one performs equally well or worse than

the original heuristic. This comes as no surprise when one looks at the amount of iterations possible in

these data instances. The penalties when infeasibilities are proposed are still active, so when a

substantial amount of iterations is possible, the LNS heuristic has enough possibilities to converge to a

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good solution. It is often said that unrestricted algorithms perform better, and need to be able to

iterate through infeasible solutions to come to a better final solution (Edelkamp, 2012). It highly seems

that this the case for the instances where the amount of iterations can be high.

From 200 customers on, the 5 minutes runtime only allow for one iteration, or part of one iteration.

This means that fast conversion becomes more important than the final solution after multiple

iterations. However the results do not necessarily confirm this. One could argue that for 200

customers, the fraction of an iteration that is done allows for the faster LNS heuristic to reach better

results, and that for 250 customers on, the fraction becomes too small for the faster LNS heuristic to

have better results. However such a conclusion would be ungrounded, as there are too many factors

at stake. First of all we do not know exactly the fractions of iterations that are done with each amount

of customers, nor do we know the amount of time one iteration would take. We know that the LNS

heuristic is somewhat faster, but this is a small relative distance.

The overall conclusion is that it is difficult to prove that the revised heuristic performs better than the

original one. For instances where small amounts of iterations can be done it can be proven that it

works worse. Saying that for bigger numbers of customers the faster LNS heuristic would work better,

would also be speculating, since it seems to only work better when a specific amount of iterations is

allowed.

6.2 Computational study: LNS operator analysis For the final two case studies, several operators of the LNS algorithm can be separately activated over

test cases to see the way they work. As said before, some heuristics can ensure that solutions converge

to better solutions, with a risk of getting into a local optimum, while others explore the large solution

space. The first phenomenon is called intensification and is more desirable in the final stage of a run.

In the first stage, the so called diversification provides for entire solution space exploration. Together

these alternations can result in better optimized results.

To research these phenomena in all operators, a case studies are performed over the two datasets are

done. The time is set fixed. This way also the behavior of CPU time as it increases with more customers

can be monitored and compared with iterations. The operators include:

Swap: customers are swapped within a route, so the order of customer visits within a route is

switched. This is an example of intra-route optimization.

Relocate: the relocate operator looks at each route, and selects if vertices of that route can

better be put on another route. This type of operation is called inter-route optimization, since

two routes interchange vertices with one operation.

Two-Opt: is a simple local search algorithm first proposed by Croes in 1958 for solving the

traveling salesman problem. The main idea behind it is to take a route that crosses over itself

and reorder it so that it does not.

Chain reversal: the chain reversal operator changes the order of a route where the start

becomes the end, and the end the start.

Full swap: a combination of swap, where the order of a route is mixed, and relocate, where

also other vehicles are selected.

6.2.1 Description of case The LNS heuristic consists of five operators, some of which are optimization algorithms. Each of these

operators perform one sort of alteration the solution, which consists of multiple routes. For each

operator, the alteration it performs may result in a better overall saving, but by only running that

operator, the solution might get stuck in a local optimum. When one has multiple operators that run

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52

sequentially, the chance of getting stuck in such an optimum is smaller. With some simple alterations

to the solver tool, we can set constraints that only a subset of the operators can run. Now we can

analyze the results and possibly draw conclusions about each of the operators.

6.2.2 Case study results

6.2.2.1 Iterations

ITER

ATI

ON

S

N TYPE OF OPERATOR

Swap Relocate Two-Opt Chain reversal Full swap All All (30 minutes) A-50 384 293 1575 3442 3426 96 580 A-100 24 8 67 426 454 7 24 A-150 6 2 8 104 133 1 1 A-200 1 1 2 51 62 1 1 A-250 1 1 2 25 3 1 1

Table 15: Results for datasets A-50 through A-250, iterations ran in 5 minutes

ITER

ATI

ON

S

N TYPE OF OPERATOR (5 MINUTES RUNTIME)

Swap Relocate Two-Opt Chain reversal Full swap All All (30 minutes) B-50 348 312 1166 2866 2083 71 496 B-100 31 38 98 489 313 6 18 B-150 3 5 10 118 113 1 3 B-200 2 1 5 55 20 1 1 B-250 1 1 1 19 28 1 1 B-300 1 1 1 13 12

Table 16: Results for datasets B-50 through B-300, iterations ran in 5 minutes

6.2.2.2 Profits

N TYPE OF OPERATOR (5 MINUTES RUNTIME)

Swap Relocate Two-Opt Chain reversal

Full swap All All (30 minutes)

A-50 6,174,11 6,172,98 6,215,74 6,357,95 6,100,41 6,049,64 6,078,74 A-100

7,528,81 8,517,88 7,191,46 7,766,74 8,175,58 8103,92 8,118,03

A-150

12,887,58 13,241,54 11,975,66 11,862,24 12,479,96 12,939,90 13,436,91

A-200

14,906,04 15,749,22 13,974,56 12,902,94 14,103,95 14,397,74 15,213,59

A-250

24,604,15 25,867,90 22,704,03 21,860,35 23,420,79 24,290,92 25,762,94

Table 17: Results for datasets A-50 through A-250, profits realized in 5 minutes runtime

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N TYPE OF OPERATOR (5 MINUTES RUNTIME)

Swap Relocate Two-Opt Chain reversal

Full swap All All (30 minutes)

B-50

3,288.69 3,275.79 3,310.74 3,372.54 3,386.93 3,552.41 3,429.95

B-100

6,801.78 7,388.75 5,571.96 5,543.48 6,254.13 7,245.34 7,239.60

B-150

23,106.71 24,147.47 21,950.80 22,387.50 22,777.46 23,401.16 24,109.93

B-200

29,540.41 30,553.19 27,529.51 28,398.64 28,325.98 29,659.07 30,045.14

B-250

70,996.47 70,357.50 70,406.43 67,055.26 67,212.16 67,430.76 68,518.58

B-300

113,827.88

112,672.73

113,998.06

111,324.01

110,877.74

112,805.36

112,327.63

Table 18: Results for datasets B-50 through B-300, profits realized in 5 minutes runtime

6.2.2.3 Distances

N TYPE OF OPERATOR (5 MINUTES RUNTIME)

Swap Relocate Two-Opt Chain reversal

Full swap All All (30 minutes)

A-50 4686,33 4689,46 4644,70 4504,49 4760,04 4810,81 4781,71 A-100

7444,21 6457,14 7783,56 7206,28 6795,44 6873,10 6856,99

A-150

8487,73 8125,76 9393,64 9505,06 8889,34 8433,40 7932,39

A-200

10208,93 9363,76 11138,41 12202,04 11003,02 10715,24 9893,38

A-250

11888,47 10618,72 13786,59 14620,27 13067,83 12195,70 10721,68

Table 19: Results for datasets A-50 through A-250, distances driven in 5 minutes runtime

N TYPE OF OPERATOR (5 MINUTES RUNTIME)

Swap Relocate Two-Opt Chain reversal

Full swap All All (30 minutes)

B-50 3,497.79 3,512.69 3,477.74 3,415.93 3,401.54 3,236.07 3,358.52 B-100

6,937.24 6,354.28 8,169.07 8,197.55 7,488.89 6,497.69 6,503.43

B-150

8,872.87 7,830.11 10,026.78 9,586,08 9,198.12 8,578.43 7,867.65

B-200

10,438.64 9,425.86 12,459.54 11,572.41 11,647.06 10,313.97 9,927.91

B-250

9938.07 10,549.04 10,524.11 13,845.28 13,690.38 12,477.78 12,380.96

B-300

11,804.65 12,931.81 11,634.47 14,286.52 14,726.80 12,807.18 13,268.90

Table 20: Results for datasets B-50 through B-300, distances driven in 5 minutes runtime

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6.2.2.4 Emissions

N TYPE OF OPERATOR (5 MINUTES RUNTIME)

Swap Relocate Two-Opt Chain reversal Full swap All All (30 minutes) A-50 2340,99 2394,19 2233,02 2169,98 2402,23 2488,07 2363,93 A-100 3933,23 3173,98 4246,49 3783,96 3398,42 3738,25 3615,13 A-150 4836,02 4392,56 5187,42 5120,89 4905,33 4919,33 4323,78 A-200 5854,82 5188,89 6363,70 7019,41 5995,36 5991,46 5491,80 A-250 6857,42 6133,86 7843,28 8544,94 7760,51 6866,97 5999,67

Table 21: Results for datasets A-50 through A-250, CO2e emitted in 5 minutes runtime

N TYPE OF OPERATOR (5 MINUTES RUNTIME)

Swap Relocate Two-Opt Chain reversal Full swap All All (30 minutes) B-50 1,794.24 1,680.64 1,690.45 1,754.41 1,722.05 1,607.51 1,773.56 B-100 3,368.16 3,150.48 4,183.06 3,938.74 3,951.87 3,261.59 3,156.97 B-150 4,514.15 4,120.38 5,302.66 4,821.19 4,801.63 4,440.67 3,985.83 B-200 5,336.41 4,845.48 6,732.88 6,088.84 6,018.44 5,166.75 4,892.39 B-250 5,361.14 5,325.65 5,673.42 7,490.97 7,112.33 7,007.39 6,594.16 B-300 6,615.39 6,726.10 6,671.49 8,081.50 7,973.79 6,680.97 6,942.74

Table 22: Results for datasets B-50 through B-300, CO2e emitted in 5 minutes runtime

We can clearly see that the relocate operator performs the best from 100 customers on. In the case of

250 and 150 customers, when the entire heuristic is ran for 30 minutes, this can outperform the

operator running only 5 minutes. In the cases of 100 and 200 customers, the Relocate operator even

outperforms the 30 minute full LNS heuristic. It is clear that the relocate can be a diversificating

operator, where the entire LNS then utilizes other operators to intensify the solution. We also note

that for the cases of 200 and 2

6.3 Green extension analysis To analyze the effects of a green extension, an option is built in that can shift away from optimizing

with regards to distance to minimize the emission. In a pure delivery or pure pickup problem, the load

increases non-decreasing or decreases non-increasing steadily, as said before. In a situation with mixed

backhauls, the load carried throughout a route can change quite a lot. Therefore, the shortest route

between a set of points may have serious implications on fuel consumption and therefore CO2 emission

if this is not explicitly considered. To measure differences, a separate optimization procedure is made

where the emission is calculated per alteration made. The main difference here with respect to the

other alterations to the heuristic, is that now the objective function changes.

6.3.1 Description of the case We introduce the green objective function (5.3), coupled to the load factor calculation function (5.1)

but then for weights instead of loading meters. In the tool, a switch is built that can call two different

optimization procedures. One optimization procedure focuses on profit and distance (original), the

other procedure focuses on emission reduction and profit. We then run this with the same use case as

in (6.1) and (6.2). The results will be organized and measured the same way as has been done in section

(6.1).

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6.3.2 Case study results

6.3.2.1 Profits

N A B

Revised CO2e objective Original objective Revised CO2e objective Original objective 50 6,813.54 5,884.85 3,695.07 3,652.55 100 8,259.13 7,772.59 7,589.56 7,239.60 150 13,285.12 13,279.54 24,561.35 23,401.16 200 14,680.38 14,285.37 30,136.39 27,859.67 250 24,554.10 23,221.56 70,613.60 69,844.66 300 - - 114,561.03 113,464.47

Table 23: results for datasets A-50 through A-250 and B-50 through B-300, profits after running for 5 minutes

6.3.2.2 Distances

N A B

Revised CO2e objective Original objective Revised CO2e objective Original objective 50 4,058.91 4,973.59 3,099.40 3,135.92 100 6,623.89 7,196.43 6,161.47 6,503.43 150 8,094.18 8,085.76 7,430.23 8,578.43 200 10,432.59 10,821.60 9,850.65 12,117.37 250 11,938.52 13,257.06 10,312.94 13,065.88 300 - - 11,068.51 12,152.06

Table 24: results for datasets A-50 through A-250 and B-50 through B-300, distances in kilometers after running for 5 minutes

6.1.2.3 CO2e emissions

N A B

Revised CO2e objective Original objective Revised CO2e objective Original objective 50 1,970.85 2,456.78 1,490.70 1,627.55 100 3,224.26 3,681.52 3,107.89 3,156.97 150 4,118.83 4,381.70 3,960.02 4,440.67 200 5,339.43 5,731.81 5,263.32 6,316.74 250 6,442.69 7,457.81 5,674.21 6,831.03 300 - - 6,150.91 6,387.33

Table 25: results for datasets A-50 through A-250 and B-50 through B-300, CO2e emissions in kilograms after running for 5 minutes

Here we can see the effects of the shift in focus from distance minimization to emission minimization.

The effects of the emission reduction appear to be positive for profits, distance and emission in all

sorts of instances. As stated before, the load factors attribute to the fuel consumption. With the green

extension, the link between load factors and profits is made. Now that this ‘knowledge’ is available,

arguably the solver becomes aware and is able to generate better results.

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Chapter 7: Real life case studies The final case study compares the work of the planners with that made by the routing tool. Since the

tool cannot re-use vehicles, but can decide the start time for rides, we shall compare the total amount

of rides, not the materials used. We use data of 1 July 2015.

7.1 Description of the case The amount of planning lines that has been handled by the Benelux planning department for the rides

of the fist of July, 2015 is 401. Even though this is the amount of planning lines, the amount of

addresses visited is lower, since these planning lines are not consolidated on addresses. When the

functionality was added to calculate load factors, this was not added as a reverse check in the solution

worksheet, because the worksheet setup would become unstable. Because we do want to know load

factors of plannings made by the planning department, and because IDLV would like to be able to

calculate these numbers autonomously, a separate tool, called load factor tool henceforth, was

developed to be used, reading only planning lines and their assigned vehicles. The load factor tool

calculates load factors as is done in the original solver, weighing the load factors of each arc in the

route, and weighing the average daily load factors with the distances driven per ride. The load factor

tool also can determine for each ride the order in which customers have been visited, which can then

be used as input for the reverse check solution worksheet to calculate distance and emission figures.

For the solver case, to reduce complexity, a macro was written to consolidate the planning lines

(respecting the maximum capacity of 13,7 loading meters) to 311. The macro was set to distance

minimization, with the faster LNS heuristic, and to respect a capacity utilization percentage of 80%.

The capacity check function for mixed backhauls was updated as a reverse check in the solution

worksheet of the solver, so we will use this as a capacity check, and CO2e emissions for both the solver

case and the planning department case. Now for the solver case, a consolidation macro was written to

reduce the planning lines from 401 to 311.

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7.2 Case study results

7.2.1 Actual results from the planning department The planning made by the planning department uses a distance of 11185,03 km, with a CO2 emission

of 5538,05 kilograms. 56 rides are used. However, 5 locations are not visited and presumably

outsourced. The map of the planning, as designed by the Benelux planning department of IDLV can be

seen below.

Figure 19: the routes as designed by the Benelux planning department

0

-1,249

-4,5

-2,42

-1,6

13,6

-0,4

-9,52,8-2,46,86,8

4,5

-0,4

-1,068

2,917

13,6-13,6-13,6

-2,8

-3,5

-0,768

-0,542

-0,4

-1,6, LK

-2

-0,4

-2,4

-0,667

-0,267

-13,6

-0,6-0,4

-13,2

-0,4

0,5

-7,6

-0,2

-1-1-1-1 -0,5-0,4-1,033

-0,4, LK

4,565

0,458

0,5

-0,2-3

-0,8

-7,6

-0,8330,4

-0,4-13,6

-0,4-0,4

-0,317

-12,5

-0,408

0,8

-1

-0,5

-1,5

-0,5-0,5

-0,4

-0,5

-0,4

13,6 13,6

-0,5-1,994-0,292-0,4

-0,4-2-2

0,986

-1,5

-1,5-0,833

-13,6

1

-4,4, LK

-2,5

0,53

-13,6

-0,8

-0,4 -0,5

-0,4

-3,229

-13,6-13,6

0,4

-0,5

-0,5-0,4-0,4

-13,6

-1,5

-1,5

-1,5

0,5

-7,2-0,40,2 0,6

-2-2,5

-2,5

-1,6

-0,8

-1,653

-1,067

0,013

-1,623

-3,15

1,4

-10,97

2,55-0,375

-0,4

-2,25

-1

0,05

-1,2

-0,4

-0,4-0,4

-1,5, LK

-2,813,6

0,4

0,4, LK

1

-0,4

0,8

4

1,333

8,40,2

2

1

1

1

-2

-2

0,51

0,4

1

1,5

0,50,5

0,40,5

-1,2

13,6

1

1,2 2,024

-0,122

-3

-8,5

2,5

-0,4

2,24

0,5

-0,4, LK

-1,6

-3,5, LK

9

-0,4, LK

-0,4

-2

0,4, LK

0,948

-8,60,8

0,4

3

0,5

1,037

-1,2

-0,8

2,5

-0,859

0,80,642

-4,058

1,2 0,25

-9,2

-1,2-0,4

-1,6

-1,6

-12,7750,4

-3,049

-0,4

-0,4

0,4

1,2

-2,247

0,4, LK

0,8

0,02

-0,4

-1,925

1

1

0,8

-0,2

-0,2

-0,2-0,2

-0,2

-0,2

-0,2

-0,146

-0,208

-0,146

0,4

-0,104

-1,25

-1,369

2,41

1,5

0,5

13,263

-1,92

0,5

-5,159

0,2

-1,2

-0,4, LK

0,825, LK

-0,2

1

0,6

0,8

-0,2

0,4

0,4

0,8

1,5

0,4

3,667

2,4

3

0,2

0,8

40,5

0,6

0,386

0,95,5

-0,448

-0,273

13,6

2,5

0,8

2,50,513,6

3,47219

4

1,008

0,4

0,5

1,1251,83

2,8

0,4

0,117 112

1,2

0,4

11

0,12

1,5

3,5

0,5, LK0,50,50,51,49

13,61,90,80,40,4

4

2,5, LK

11 0,2730,6580,8337,241,64,43,6

1,1150,2731,1130,5

0,5

0,40,4

2

0,40,40,40,80,410

0,4

4,362

0,4

-0,4

3,5

2,7, LK

2,5

10,51,51

0,40,40,4

11

2,788

0,40,5

11,20,5

0,7470,104

0,8330,40,40,2560,4

0,5

0,4

0,4670,375

2,4

0,8

0,6040,5211,7630,063

0,40,238

1,013

1,5

1,24

0,40,2 0,1230,8

1,27

0,61,7250,5690,5

1,254

0,129

1, LK

7,59

0,5, LK

0,767

1,45

0,2061,267

0,8330,4 0,50,399

3,41

0,413

1,9

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7.2.2 Results from the solver The planning made by the planning department uses a distance of 8238,31 km, with a CO2 emission of

4336,96 kilograms. 54 rides are used. The 5 locations that were not visited in the original planning have

been visited in the solution returned by the solver. The map of the solver’s solution can be seen below.

Figure 20: The routes as designed by the Solver, with 30 minutes runtime

0

-4,5

-2,42

-1,6

13,6

-0,4

-9,52,8-2,413,6

4,5

-0,4

-1,068

2,917

13,6-13,6-13,6

-2,8

-5,5

-0,768

-0,542

-0,4-1,6, LK

-3,6

-11,885

-2,4

-0,667

-0,267

-13,6

-0,6-0,4

-13,2

-0,4

0,5

-7,6

-0,2

-7

-0,4, LK

4,565

0,458

0,5

-0,8

-7,6

0,4-0,4

-13,6-0,808-0,4

-0,317

-12,5

0,8

-1

-1,5

-0,4

-0,4

13,6 13,6

-0,4

-0,4-2-2

3,396

-1,5

-13,6

4,5

-4,4, LK

-2,5

-13,6

-0,4

-0,4

-3,229

-13,6-13,6

0,4

-0,5

-13,6

-1,5

-1,5

-1,5

0,5

-7,2 0,2 0,6

-2,5

-2,5

-1,6

-0,8

-1,653

-1,067

0,013

-1,623

-3,15

1,4

-10,97

2,55-0,375

-0,4

-2,25

-1

0,05

-1,2

-0,4

-0,4-0,4

-1,5, LK

-2,813,6

1,408

0,4, LK

1

-0,4

0,8

4

1,333

9,20,2

2

1

1

1

-2

-2

9

0,4

1,5

0,50,5

0,40,5

-1,2

13,61,2 2,024

-0,122

-3

-8,5

2,5

-0,4

2,24

0,5

-0,4, LK

-1,6

-3,5, LK

9

-0,4, LK

-0,4

-2

0,4, LK

0,948

-8,60,8

0,41,117

1,037

-1,2

-0,8

2,5

-0,859

1,61,242

-4,058

1,2 0,25

-9,2

-1,2-0,4

-1,6

-1,6

-12,7750,4

-3,049

-0,4

-0,4

0,4

1,2

-2,247

0,4, LK0,02

-0,4

-1,925

1

1

1,2

-0,2

-0,2

-0,2-0,2

-0,2

-0,2

-0,2

-0,146

-0,208

-0,146

-0,104

-1,25

-1,369

1,5

0,5

13,263

-7,079

0,5

0,2

-1,2

-0,4, LK

0,825, LK

-0,2

1,4

0,6

-0,2

0,4

0,8

1,5

0,4

3,667

2,4

3

0,2

0,8

4,5

0,6

0,386

6,4

-0,448

-0,273

13,6

0,8

2,50,513,6

3,47219

40,4

0,5

1,1253,32

2,8

0,4112

1,2

0,4

13,7

0,12

1,5

3,5

0,5, LK1,5

13,64,804

4

5,2, LK

11 0,2730,6580,83313,64,43,6

1,1150,2731,1130,5

2,9

13,2

0,4

5,109

-0,4

3,5

2,5

4

11

4,042

0,40,5

0,8331,4560,4

0,4670,375

5,351

0,82,872

1,013

1,5

1,24

0,1230,8

1,27

1,7250,5690,50,129

1, LK

7,59

0,5, LK

1,45

0,2060,8330,50,399

3,41

0,413

1,9

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7.3 Case study conclusions Both models use a distance matrix based on Euclidian distances, which means that road distance is not

considered. This may have skewed the results slightly in favor of the solver, but we see that only few

of the routes seem impossible, e.g. crossing water. Also, since the distances of both cases were

calculated in the same way, there is a constant error so the relative reduction in distance is still very

relevant.

When one looks at the graph, one might think that the second case has more lines, therefore driving

more distance. This is however not the case, since the lines from the depot to the first customer, and

from the last customer to the depot have not been drawn on the figures above. It has been chosen to

do so since drawing these lines would seriously clutter the image (even more). So what can be seen is

that in the solution returned by the solver, vehicles that come back from a customer far away from the

depot, do a final (assumed pickup) visit at customer locations close to the depot.

It is admitted that the routes returned by the solver are because of the reason above less aesthetically

appealing and therefore more difficult to realize in practice, but nonetheless should the significant

savings not be disregarded:

CO2 emissions are reduced from 5538,05 kilograms to 4336,96 kilograms, a reduction of

21,69%

The total distance is reduced from 11185,03 km to 8238,31 km, a reduction of 26,35%

The amount of vehicles used decreases from 56 to 54.

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Chapter 8: Conclusions In this section, the findings and implications from the case studies are briefly summarized. Also an

overview is given of the strong and weak point of implementing either this tool or a commercial

application. We conclude with a look ahead for future recommendations for IDLV and the research

community.

We start off with the overall conclusion that for the IDLV Benelux planning department, even though

they have a very specific set of constraints, automated solutions for their ride planning are very well

possible. To this end, a generic tool that could run stably for 20 customers, was adapted into a tailored,

specific tool that can solve instances up to 300 customers. Even though when using a VBA based

program, the calculation speed was an issue, this should not be an issue with other programming

languages.

The other (academic) overall conclusion that can be drawn is that it has proven to be possible to adapt

the original solver tool by G. Erdogan, to a solver that is able to solve a complex VRP with mixed

backhauls, true fleet heterogeneity and a green extension.

As for the quality of the alterations made to the original solver, we can reflect on the case studies and

draw the following conclusion:

The faster LNS heuristic allows for the script to run somewhat faster, but the difference is

insignificant. The relatively small difference in length might be addressable to the fact that only

a small fraction of the addresses have the special Tailgate / HVHR constraints. However it was

not the iteration speed that was expected to set this alteration apart, but the ability to

converge to feasible solutions faster. However presumably because there are more factors at

play for when the faster LNS heuristic runs, only for one dataset we could find positive results.

This leads us to conclude that the effectiveness of the faster LNS cannot be proven and it would

be wise to keep the unaltered LNS heuristic.

Operator analysis allows to make estimations on diversificating and intensificating aspects of

operators. Because of the best results being returned by the Relocate operator, together with

the fact that for bigger customer instances, iterations take over 30 minutes, the Relocate

operator should be placed at the start of the improvement procedure.

The analysis of the green extension shows that for all datasets the emission reduction focus

outperforms the distance minimization focus. It seems that when using a model with mixed

backhauls, simply minimizing distance is not enough as this is not the only cost factor. However

when the solver is ‘aware’ of the costs attributed to load factors, it is able to perform better.

In the real life case we also see that the tool outperforms the manually made planning on all aspects.

The reductions in distance are over 25%, while the solver option still services the 5 customers that are

sourced out by the planning department. At the same time, the CO2 emissions –and therefore, since

the linear relation, also the fuel consumption– are reduced with over 20%.

Apart from the direct cost and distance savings that are addressed, other benefits also emerge: the

time it takes to make a planning or at least an initial planning reduced significantly. In the time it would

take two planners to draw all the addresses and demand on a map, the solver would have already

mapped everything and made an initial solution. Also to the planners, now more cost drivers and KPIs

become automatically visible, so changes made can be directly and uniformly assessed. This tool can

thus take workload away from planners which with the ever growing customer base and therefore

complexity will be very welcome. Also, automating this process can open the door for other automated

solutions. For example, a digital format of rides can be used by the transshipment center to optimize

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61

their operations. Also, when a planning can be made in a shorter amount of time, the planning can be

made later in the day, and more orders can be accepted before starting the designing of routes. This

would increase the service towards customers.

8.1 Limitations When addressing limitations of the solver we first take a viewpoint of what the solving limitations are

from an academic perspective. Even though the tool is not developed as a ready to use application, we

shall still address its limitations as if it were so, to come to better recommendations with respect to

implementation of this or other tools.

Academic viewpoint: The tool in itself works. Its alterations work and the tool can propose sound

solutions. Due to some data sensitivity limitations no actual mapping data could be used, this should

be taken into account when valuing the savings obtained by the solver.

For practical use: At this moment, the tool uses the Google Geocoding API, which looks at the zipcode

and country when geocoding into coordinates. The API is fast, but not always reliable. For zipcodes

ending in 0, the coordinates returned sometimes are not correct. It is assumed that the new TMS

comes with a geocoding service, and coordinates can be saved.

The solver works relatively slow compared to other programming languages. The programming style

used is called object oriented programming. For this style, it is known that other languages such as C++

run significantly faster. Also these shells should be more stable, as excel VBA is not meant to run large

programs. For now, the results returned are good, but more savings could be made when the code is

rewritten into another programming language.

As said before, the distance matrices or travel times matrices are not calculated based on road

mapping. This means that when only distance is known, one average speed is set. Achieving travel

times matrices based on road data would not imply the issue of using one average speed.

For now, it is not possible to implement the tool, since the time windows are still entered into the

planning lines manually, in a string form. There is no unified format so it is not possible for a tool to

read these. Other than this it would also make more sense to delay any form of implementation until

after the new TMS runs.

It is known that IDLV uses different rates for locations further away from the depot, so it was chosen

to use this for the internal profit/penalty function of the solver, as actual profits were not directly

possible to calculate. Profits were thus corrected with a factor consistent to the distance from the

depot. However this makes the profitability of each order about the same, leaving the solver incapable

of choosing which orders not to deliver. Therefore, the solver is incapable of making grounded

decisions on which shipments to charter

8.2 Implementation Any form of implementation would only make sense until after the new TMS is installed and works

well. This is because of lost effort when something has to be reinstalled, and more so because the IT

focus now lies on this new TMS. There would simply be no time to implement it any sooner.

That being said, the regression tool should be relatively easy to implement as it is merely a formula,

and can familiarize planners with working with automated solution suggestions.

For implementing a variant of the routing tool proposed in this thesis, the implementation

requirements roughly follow from the limitations as stated in (8.2). It is recommended to use a

different shell/language and use better geocoding and distance matrix services. The VBA code is fairly

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62

easy to read and the changes have been documented in pseudocode so this should not be a problem

for an advanced programmer. For the use of better geographical API services, some code (although in

VBA) has already been set up, as to ease the switch to these services.

When one would look at implementing another, more commercial tool, other requirements can be

set. Here it should be controlled that the constraints and the way they can be addressed with an

improvement heuristic, can be added to the package. It would be very useful if the tailoring of such a

tool was done together with IDLV’s IT consultant and if the code is made clear to the consultant. The

code should not be a black box to the employees of IDLV but should be openly changeable. When we

look back at section (5.1) with this in mind, an option like ODL Studio with the JSPRIT engine would be

preferable over an option like PTV Group’s xTour. For full integration with the TMS however, the PTV

Group products would arguably be more preferable.

8.3 Recommendations The first recommendation is that IDLV should implement both the regression model and keep

collecting data as to strengthen the model. It is a fairly simple tool, but the high quality of the model

shows that it is possible to estimate the needed resources very accurately.

The second recommendation is about IDLV implementing a routing tool. It has been shown, even with

a tool that is not yet using the optimal that significant savings can be made. With the ever growing

complexity, more and more of the planners’ time will have to be addressed to troubleshooting and

accepting and planning on-line orders. To this end, a planning that can be generated fast and reliable

would increase customer service while taking load of planners’ backs. The advice is to start looking into

options for implementing a routing software package, as implementing one would be possible for their

operations and also very beneficial.

As the options for implementing tools are now clear, it is also stressed that IDLV focuses on the type

of data they collect with the new TMS. So when implementing the new TMS, it should be possible to

store time windows in multiple ways.

Now for the recommendation of which tool to implement, this decision is to be made by IDLV, as more

options exist. As stated in (8.3), for each of these options some expert level of programming is needed.

When using the tool in this project as a starting point, the programmer will have to set up a new

program and do a lot of re-writing. The modules needed for the tool to work, as well as the streamlining

also need to be added. When implementing other applications such as open source studios, the

constraints have to be coded and implemented. When the choice for a totally streamlined package is

made, it is recommended not to lose control of the implementation and tailoring. Within these three

options, the tailoring of an open source studio seems like the middle ground, and in this case it

probably is. The JSPRIT engine has already made great results, and the ODL studio allows for control

within the company. A total package will relieve IDLV of most insecurities, but may involve a loss of

control and is commonly presumed the most expensive.

So still some options exist, and it is at this point not possible to blatantly advise in any of the options.

Therefore the final recommendation is to get in touch with the companies described in section (5.2)

to get to know the levels of control and costs associated with implementing any of the tools.

8.4 Future research As was originally the purpose of this thesis, some orders that are picked up on day t=1 have a scheduled

delivery for day t=2. This means that this order is to be picked up and stored at the depot on day t=1,

where on day t=2 a delivery is orchestrated from the hub to the delivery address. Common sense says

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63

that if the pickup and delivery addresses are close to each other, direct deliveries should be possible.

To the best of my knowledge this has not yet been researched. So in academic terms, this would be

called a VRPMB with a direct Pickup and Delivery extension.

Another request that became clear at IDLV, was that for certain regions, on-line pickup requests are

expected to arrive later on in the day. This stochastical regional capacity reservation problem is also a

very interesting one to research, but to the best of my knowledge has not yet been researched so far.

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64

9 Appendix

9.1 tables and images

9.1.1 Planning process according to the quality manual

1. Order administration / planning: The process is described in the order administration manual.

2. Planning: The system makes a routing for the order depending on e.g. the service level. The

routing can be overruled by the planner.

3. Planning: Client specific information is gathered together on behalf of order administration in

their MS file. Client specific information for planning and drivers is gathered together in the

department manual. Specific instructions are in place for HV/HR traffic.

4. Planning: Minimum information in the trip file: truck, trailer, driver and if transport is done by

a charter the charter relation name.

5. Planning: If transport is done by own drivers (or drivers from charters who drive under

supervision of Verhoeven) drivers get instructions about what and where to load and unload

and the sequence of the work. They also will get client specific instructions as time frames to

load or unload.

6. Planning: Transport can be internal and external monitored with help of the truck following

system and active information by drivers and to get information from drivers or subcontractor

and active information from client or (un)loading address.

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9.1.2 Order arrival and planning process, gathered from interviews

Image 2: Legend

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9.1.3 Screenshot planning lines

9.1.4 Screenshot of the obtained per-day overview

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1

9.1.5 Benelux fleet emission numbers for January 2015

Brand and type

Build year

E. Norm

Km: Fuel consumed: CO2 emitted CO2 [kg/km]

Driving

Stationary

driving

stationary

Total

VOLVO FH12 2003 4 5984 1965 33,78 5207 90 5296 0,89

VOLVO FH12 2003 4 6670 2378 24,75 6302 66 6367 0,95

VOLVO FH12 2003 4 740 360 26,88 954 71 1025 1,39

VOLVO FH12 2003 4 1232 230 19,78 610 52 663 0,54

VOLVO FH12 2003 4 7273 2183 30,99 5784 82 5866 0,81

VOLVO FH12 2003 3 7659 2268 40,86 6010 108 6118 0,80

VOLVO FH12 2005 4 5455 1632 43,91 4325 116 4442 0,81

VOLVO FH12 2005 4 8402 2128 36,36 5639 96 5735 0,68

VOLVO FH 440

2006 5 7809 2211 26,40 5858 70 5928 0,76

VOLVO FH 440

2006 5 6685 2218 22,40 5877 59 5936 0,89

VOLVO FH 440

2006 5 6855 2119 39,72 5615 105 5720 0,83

VOLVO FH 440

2006 5 7113 2575 44,80 6824 119 6943 0,98

DAF XF95 2005 3+R 7256 1469 22,37 3893 59 3952 0,54

DAF XF95 2005 3+R 6322 1684 25,65 4464 68 4532 0,72

DAF XF95 2005 3+R 7115 2275 34,65 6030 92 6122 0,86

VOLVO FH 440

2009 5 6934 1864 43,30 4940 115 5055 0,73

VOLVO FH 440

2009 5 9139 2805 47,34 7432 125 7558 0,83

VOLVO FH 480

2008 5-EEV 6454 1935 34,67 5129 92 5221 0,81

VOLVO FH 480

2008 5 6727 2157 64,41 5715 171 5885 0,87

DAF XF 105.480

2008 5 7074 1968 29,97 5216 79 5295 0,75

DAF XF105.460

2006 5 6317 1725 26,27 4572 70 4641 0,73

DAF XF105 2007 5 6508 1413 21,53 3746 57 3803 0,58

VOLVO FH42 2008 5 6784 1330 20,25 3525 54 3578 0,53

VOLVO FM9 2005 3+R 5792 1368 47,86 3625 127 3752 0,65

TOTAL: 154299

44260

808,91 117290

2144 119433

0,77

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9.1.6 Case study customer locations for dataset A-50 through A-250

Figure 21: Customer locations for dataset A-50

0,

-0,45

-10, LK

-5,5, B-13,6, B

-1,2

-0,543

-2, LK-0,5

-1,2

-3,6-9,6

5,6 -13,522

0,8

11,5

-3,2

-4,4

-1,101, E-0,833, E

13,6

-1,2

-0,8

-1,2

-1,6 -1,67,333

0,53-5,7

-4, B

-2,032, LK-0,8

-0,4

13,6, B5,2, LK, E4,4, A

13,6, B

5,9, D

-10-0,5-1,16

-6,8

-1,604

13,6

5, A7, A0, A

-1,5

-0,4

-13,6

-2

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Figure 22: Customer locations for dataset A-100

0,

-0,45

-10, LK

-5,5, B-13,6, B

-1,2

-0,543

-2, LK-0,5

-1,2

-3,6-9,6

5,6 -13,522

0,8

11,5

-3,2

-4,4

-1,101, E-0,833, E

13,6

-1,2

-0,8

-1,2

-1,6 -1,67,333

0,53-5,7

-4, B

-2,032, LK-0,8

-0,4

13,6, B5,2, LK, E4,4, A

13,6, B

5,9, D

-10-0,5-1,16

-6,8

-1,604

13,6

5, A7, A0, A

-1,5

-0,4

-13,6

-2

-0,4

5,6

10

-2,4

-0,8

-1,782

-0,4

-2,043

-1,4331,433

-0,4

-0,787-0,041-0,067

-13,6

-0,4

2,65

-0,8

-11,533

-0,1

-3,75-4,05

-13,6, B

-2,0331,1

0,4, LK

-0,4-0,417

13,6, A

-4,2

-1,2

2 -0,5

-1

-1-0,4

0,5

-3

-2,173

-0,5

-0,4

0,5

0,8

-1-2

0,439-1

-1-1

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Figure 23: Customer locations for dataset A-150

0,

-0,45

-10, LK

-5,5, B-13,6, B

-1,2

-0,543

-2, LK-0,5

-1,2

-3,6-9,6

5,6 -13,522

0,8

11,5

-3,2

-4,4

-1,101, E-0,833, E

13,6

-1,2

-0,8

-1,2

-1,6 -1,67,333

0,53-5,7

-4, B

-2,032, LK-0,8

-0,4

13,6, B5,2, LK, E4,4, A

13,6, B

5,9, D

-10-0,5-1,16

-6,8

-1,604

13,6

5, A7, A0, A

-1,5

-0,4

-13,6

-2

-0,4

5,6

10

-2,4

-0,8

-1,782

-0,4

-2,043

-1,4331,433

-0,4

-0,787-0,041-0,067

-13,6

-0,4

2,65

-0,8

-11,533

-0,1

-3,75-4,05

-13,6, B

-2,0331,1

0,4, LK

-0,4-0,417

13,6, A

-4,2

-1,2

2 -0,5

-1

-1-0,4

0,5

-3

-2,173

-0,5

-0,4

0,5

0,8

-1-2

0,439-1

-1-1-1

-3,348, B

-1,5

0,4

-1,2-1,2

-1,6

-0,4

-8,5

-0,4

-0,273

1,2

-2,5

2 0,2

0,681

-11,60,588

0,8-4,2

0,833

3,6-0,4

13,6

-2,4

-1,2

-0,4-0,8, LK

-0,8

-2

0,5

-1,19

-0,47

0,4

5

0,5211,284

3,766

6,3

0,50,5 0,50,400,5 3,5

-1,6, E

13,6

1,6

0,8

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5

Figure 24: Customer locations for dataset A-200

0,

-0,45

-10, LK

-5,5, B-13,6, B

-1,2

-0,543

-2, LK-0,5

-1,2

-3,6-9,6

5,6 -13,522

0,8

11,5

-3,2

-4,4

-1,101, E-0,833, E

13,6

-1,2

-0,8

-1,2

-1,6 -1,67,333

0,53-5,7

-4, B

-2,032, LK-0,8

-0,4

13,6, B5,2, LK, E4,4, A

13,6, B

5,9, D

-10-0,5-1,16

-6,8

-1,604

13,6

5, A7, A0, A

-1,5

-0,4

-13,6

-2

-0,4

5,6

10

-2,4

-0,8

-1,782

-0,4

-2,043

-1,4331,433

-0,4

-0,787-0,041-0,067

-13,6

-0,4

2,65

-0,8

-11,533

-0,1

-3,75-4,05

-13,6, B

-2,0331,1

0,4, LK

-0,4-0,417

13,6, A

-4,2

-1,2

2 -0,5

-1

-1-0,4

0,5

-3

-2,173

-0,5

-0,4

0,5

0,8

-1-2

0,439-1

-1-1-1

-3,348, B

-1,5

0,4

-1,2-1,2

-1,6

-0,4

-8,5

-0,4

-0,273

1,2

-2,5

2 0,2

0,681

-11,60,588

0,8-4,2

0,833

3,6-0,4

13,6

-2,4

-1,2

-0,4-0,8, LK

-0,8

-2

0,5

-1,19

-0,47

0,4

5

0,5211,284

3,766

6,3

0,50,5 0,50,400,5 3,5

-1,6, E

13,6

1,6

0,8

1,5, E

0,4

0,5

-0,75

-0,417

-0,521

-0,521

-0,521

-1,6, E

-0,4, E

2,1

-13,6

-0,4

0,4

0,8-1,6, E

12,8, D 2,40,4

2

-0,817

2

-1,363

1,2

0,4

0,4, B

1,658

0,531

-0,4-0,438

-0,352

-0,4-0,4

-0,788-1,6

-0,8

-0,8

-0,8-0,8

-0,2

0,833

-0,416

-0,596

4

2,15

-0,4, E-2,8, E

-2,8, E

0,6

-1,171, B

A1,Boxtrailer,TailliftA2,Boxtrailer,TailliftA3,Boxtrailer,TailliftA4,Boxtrailer,Taillift

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Figure 25: Customer locations for dataset A-250

0,

-0,45

-10, LK

-5,5, B-13,6, B

-1,2

-0,543

-2, LK-0,5

-1,2

-3,6-9,6

5,6 -13,522

0,8

11,5

-3,2

-4,4

-1,101, E-0,833, E

13,6

-1,2

-0,8

-1,2

-1,6 -1,67,333

0,53-5,7

-4, B

-2,032, LK-0,8

-0,4

13,6, B5,2, LK, E4,4, A

13,6, B

5,9, D

-10-0,5-1,16

-6,8

-1,604

13,6

5, A7, A0, A

-1,5

-0,4

-13,6

-2

-0,4

5,6

10

-2,4

-0,8

-1,782

-0,4

-2,043

-1,4331,433

-0,4

-0,787-0,041-0,067

-13,6

-0,4

2,65

-0,8

-11,533

-0,1

-3,75-4,05

-13,6, B

-2,0331,1

0,4, LK

-0,4-0,417

13,6, A

-4,2

-1,2

2 -0,5

-1

-1-0,4

0,5

-3

-2,173

-0,5

-0,4

0,5

0,8

-1-2

0,439-1

-1-1-1

-3,348, B

-1,5

0,4

-1,2-1,2

-1,6

-0,4

-8,5

-0,4

-0,273

1,2

-2,5

2 0,2

0,681

-11,60,588

0,8-4,2

0,833

3,6-0,4

13,6

-2,4

-1,2

-0,4-0,8, LK

-0,8

-2

0,5

-1,19

-0,47

0,4

5

0,5211,284

3,766

6,3

0,50,5 0,50,400,5 3,5

-1,6, E

13,6

1,6

0,8

1,5, E

0,4

0,5

-0,75

-0,417

-0,521

-0,521

-0,521

-1,6, E

-0,4, E

2,1

-13,6

-0,4

0,4

0,8-1,6, E

12,8, D 2,40,4

2

-0,817

2

-1,363

1,2

0,4

0,4, B

1,658

0,531

-0,4-0,438

-0,352

-0,4-0,4

-0,788-1,6

-0,8

-0,8

-0,8-0,8

-0,2

0,833

-0,416

-0,596

4

2,15

-0,4, E-2,8, E

-2,8, E

0,6

-1,171, B

-0,448

-1,2

0,5

0,8

1,292

1

0,2

1,2

0,917

1,837

7

-0,4

0,4

1,6

8,8

0,4

0,75

0,924, E

1,5

0,4

1

1,5

3

0,2

5

1

1,93, D

0,4121,441

13,6

1,2111125,5

1,215, E

0,2 0,951,1

9,2

7,61,24,8

1,152,5 0,230,4

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9.1.7 Case study customer locations for dataset B-50 through B-300

Figure 26: Customer locations for dataset B-50

0,

-4,5

-2,42

-1,6

13,6, B

-0,4

-9,5, B2,8, B-2,4, B13,6

4,5, A

-0,4

-1,068

2,917

13,6, A-13,6, A-13,6, B

-2,8

-5,5, B

-0,768

-0,542

-0,4-1,6, LK

-3,6

-11,885

-2,4

-0,667

-0,267-13,6

-0,6-0,4

-13,2

-0,4, D

0,5

-7,6

-0,2

-7

-0,4, LK

4,565

0,458

0,5

-0,8

-7,6

0,4-0,4 -13,6-0,808-0,4

-0,317

-12,5

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Figure 27: Customer locations for dataset B-100

0,

-4,5

-2,42

-1,6

13,6, B

-0,4

-9,5, B2,8, B-2,4, B13,6

4,5, A

-0,4

-1,068

2,917

13,6, A-13,6, A-13,6, B

-2,8

-5,5, B

-0,768

-0,542

-0,4-1,6, LK

-3,6

-11,885

-2,4

-0,667

-0,267-13,6

-0,6-0,4

-13,2

-0,4, D

0,5

-7,6

-0,2

-7

-0,4, LK

4,565

0,458

0,5

-0,8

-7,6

0,4-0,4 -13,6-0,808-0,4

-0,317

-12,5

0,8

-1

-1,5

-0,4

-13,6

-0,4

13,6, D 13,6

-0,4

-0,4-2-2

3,396

-1,5

0,5

-13,6, D

4,5

-4,4, LK

-2,5

-13,6

-0,4

-0,4

-3,229

-13,6-13,6

0,4, E

-0,5

-13,6

-1,5

-1,5

-1,50,5, B

-7,2 0,2 0,6

-2,5

-2,5

-1,6

-0,8

-1,653

-1,067

0,013-1,623

-3,15

1,4

-10,972,55-0,375

-0,4

-2,25

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Figure 28: Customer locations for dataset B-150

0,

-4,5

-2,42

-1,6

13,6, B

-0,4

-9,5, B2,8, B-2,4, B13,6

4,5, A

-0,4

-1,068

2,917

13,6, A-13,6, A-13,6, B

-2,8

-5,5, B

-0,768

-0,542

-0,4-1,6, LK

-3,6

-11,885

-2,4

-0,667

-0,267-13,6

-0,6-0,4

-13,2

-0,4, D

0,5

-7,6

-0,2

-7

-0,4, LK

4,565

0,458

0,5

-0,8

-7,6

0,4-0,4 -13,6-0,808-0,4

-0,317

-12,5

0,8

-1

-1,5

-0,4

-13,6

-0,4

13,6, D 13,6

-0,4

-0,4-2-2

3,396

-1,5

0,5

-13,6, D

4,5

-4,4, LK

-2,5

-13,6

-0,4

-0,4

-3,229

-13,6-13,6

0,4, E

-0,5

-13,6

-1,5

-1,5

-1,50,5, B

-7,2 0,2 0,6

-2,5

-2,5

-1,6

-0,8

-1,653

-1,067

0,013-1,623

-3,15

1,4

-10,972,55-0,375

-0,4

-2,25-1

0,05

-1,2

-0,4, E

-0,4, E-0,4

-1,5, LK

-2,813,6

1,408

0,4, LK

1

-0,4, E

0,8

4

1,333

9,20,2

2

1

11

-2

-2

9, D

0,4

1,5

0,5 0,50,40,5

-1,2, E

13,61,2 2,024

-0,122

-3

-8,5

2,5, D

-0,4

2,24

0,5, D

-0,4, LK

-1,6-3,5, LK

9, D

-0,4, LK

-0,4

-2

0,4, LK

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Figure 29: Customer locations for dataset B-200

0,

-4,5

-2,42

-1,6

13,6, B

-0,4

-9,5, B2,8, B-2,4, B13,6

4,5, A

-0,4

-1,068

2,917

13,6, A-13,6, A-13,6, B

-2,8

-5,5, B

-0,768

-0,542

-0,4-1,6, LK

-3,6

-11,885

-2,4

-0,667

-0,267-13,6

-0,6-0,4

-13,2

-0,4, D

0,5

-7,6

-0,2

-7

-0,4, LK

4,565

0,458

0,5

-0,8

-7,6

0,4-0,4 -13,6-0,808-0,4

-0,317

-12,5

0,8

-1

-1,5

-0,4

-13,6

-0,4

13,6, D 13,6

-0,4

-0,4-2-2

3,396

-1,5

0,5

-13,6, D

4,5

-4,4, LK

-2,5

-13,6

-0,4

-0,4

-3,229

-13,6-13,6

0,4, E

-0,5

-13,6

-1,5

-1,5

-1,50,5, B

-7,2 0,2 0,6

-2,5

-2,5

-1,6

-0,8

-1,653

-1,067

0,013-1,623

-3,15

1,4

-10,972,55-0,375

-0,4

-2,25-1

0,05

-1,2

-0,4, E

-0,4, E-0,4

-1,5, LK

-2,813,6

1,408

0,4, LK

1

-0,4, E

0,8

4

1,333

9,20,2

2

1

11

-2

-2

9, D

0,4

1,5

0,5 0,50,40,5

-1,2, E

13,61,2 2,024

-0,122

-3

-8,5

2,5, D

-0,4

2,24

0,5, D

-0,4, LK

-1,6-3,5, LK

9, D

-0,4, LK

-0,4

-2

0,4, LK

0,948

-8,60,8

0,41,117

1,037, D

-1,2

-0,8

13,6

2,5

-0,859

1,61,242

-4,058

1,2 0,25-9,2

-1,2-0,4

-1,6

-0,4

-1,6

-12,7750,4, B -3,049

-0,4

-0,4

0,4

1,2

-2,247, D

0,4, LK0,02

-0,4

-1,925

1

1

1,2

-0,2

-0,2

-0,2-0,2

-0,2

-0,2

-0,2

-0,146

-0,208

-0,146-0,104

-1,25

-1,369, B

A1,Boxtrailer,TailliftA2,Boxtrailer,TailliftA3,Boxtrailer,TailliftA4,Boxtrailer,Taillift

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Figure 30: Customer locations for dataset B-250

0,

-4,5

-2,42

-1,6

13,6, B

-0,4

-9,5, B2,8, B-2,4, B13,6

4,5, A

-0,4

-1,068

2,917

13,6, A-13,6, A-13,6, B

-2,8

-5,5, B

-0,768

-0,542

-0,4-1,6, LK

-3,6

-11,885

-2,4

-0,667

-0,267-13,6

-0,6-0,4

-13,2

-0,4, D

0,5

-7,6

-0,2

-7

-0,4, LK

4,565

0,458

0,5

-0,8

-7,6

0,4-0,4 -13,6-0,808-0,4

-0,317

-12,5

0,8

-1

-1,5

-0,4

-13,6

-0,4

13,6, D 13,6

-0,4

-0,4-2-2

3,396

-1,5

0,5

-13,6, D

4,5

-4,4, LK

-2,5

-13,6

-0,4

-0,4

-3,229

-13,6-13,6

0,4, E

-0,5

-13,6

-1,5

-1,5

-1,50,5, B

-7,2 0,2 0,6

-2,5

-2,5

-1,6

-0,8

-1,653

-1,067

0,013-1,623

-3,15

1,4

-10,972,55-0,375

-0,4

-2,25-1

0,05

-1,2

-0,4, E

-0,4, E-0,4

-1,5, LK

-2,813,6

1,408

0,4, LK

1

-0,4, E

0,8

4

1,333

9,20,2

2

1

11

-2

-2

9, D

0,4

1,5

0,5 0,50,40,5

-1,2, E

13,61,2 2,024

-0,122

-3

-8,5

2,5, D

-0,4

2,24

0,5, D

-0,4, LK

-1,6-3,5, LK

9, D

-0,4, LK

-0,4

-2

0,4, LK

0,948

-8,60,8

0,41,117

1,037, D

-1,2

-0,8

13,6

2,5

-0,859

1,61,242

-4,058

1,2 0,25-9,2

-1,2-0,4

-1,6

-0,4

-1,6

-12,7750,4, B -3,049

-0,4

-0,4

0,4

1,2

-2,247, D

0,4, LK0,02

-0,4

-1,925

1

1

1,2

-0,2

-0,2

-0,2-0,2

-0,2

-0,2

-0,2

-0,146

-0,208

-0,146-0,104

-1,25

-1,369, B

1,5

0,5

13,263

-7,079, B

0,5

0,2

-1,2

-0,4, LK

0,825, LK

-0,2

1,4

0,6

-0,2

0,4

0,8

1,5

0,4

3,667

2,4

3

0,2

0,8

4,5

0,6

0,386

6,4

-0,448

-0,273

13,6

0,8

2,5, D0,5, E13,6, B

3,4721940,4

0,5

1,1253,32

2,8, B

0,4112

1,20,4

13,7, D

0,12

1,5

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Figure 31: Customer locations for dataset B-300

0,

-4,5

-2,42

-1,6

13,6, B

-0,4

-9,5, B2,8, B-2,4, B13,6

4,5, A

-0,4

-1,068

2,917

13,6, A-13,6, A-13,6, B

-2,8

-5,5, B

-0,768

-0,542

-0,4-1,6, LK

-3,6

-11,885

-2,4

-0,667

-0,267-13,6

-0,6-0,4

-13,2

-0,4, D

0,5

-7,6

-0,2

-7

-0,4, LK

4,565

0,458

0,5

-0,8

-7,6

0,4-0,4 -13,6-0,808-0,4

-0,317

-12,5

0,8

-1

-1,5

-0,4

-13,6

-0,4

13,6, D 13,6

-0,4

-0,4-2-2

3,396

-1,5

0,5

-13,6, D

4,5

-4,4, LK

-2,5

-13,6

-0,4

-0,4

-3,229

-13,6-13,6

0,4, E

-0,5

-13,6

-1,5

-1,5

-1,50,5, B

-7,2 0,2 0,6

-2,5

-2,5

-1,6

-0,8

-1,653

-1,067

0,013-1,623

-3,15

1,4

-10,972,55-0,375

-0,4

-2,25-1

0,05

-1,2

-0,4, E

-0,4, E-0,4

-1,5, LK

-2,813,6

1,408

0,4, LK

1

-0,4, E

0,8

4

1,333

9,20,2

2

1

11

-2

-2

9, D

0,4

1,5

0,5 0,50,40,5

-1,2, E

13,61,2 2,024

-0,122

-3

-8,5

2,5, D

-0,4

2,24

0,5, D

-0,4, LK

-1,6-3,5, LK

9, D

-0,4, LK

-0,4

-2

0,4, LK

0,948

-8,60,8

0,41,117

1,037, D

-1,2

-0,8

13,6

2,5

-0,859

1,61,242

-4,058

1,2 0,25-9,2

-1,2-0,4

-1,6

-0,4

-1,6

-12,7750,4, B -3,049

-0,4

-0,4

0,4

1,2

-2,247, D

0,4, LK0,02

-0,4

-1,925

1

1

1,2

-0,2

-0,2

-0,2-0,2

-0,2

-0,2

-0,2

-0,146

-0,208

-0,146-0,104

-1,25

-1,369, B

1,5

0,5

13,263

-7,079, B

0,5

0,2

-1,2

-0,4, LK

0,825, LK

-0,2

1,4

0,6

-0,2

0,4

0,8

1,5

0,4

3,667

2,4

3

0,2

0,8

4,5

0,6

0,386

6,4

-0,448

-0,273

13,6

0,8

2,5, D0,5, E13,6, B

3,4721940,4

0,5

1,1253,32

2,8, B

0,4112

1,20,4

13,7, D

0,12

1,5

3,5, D

0,5, LK1,513,6, D

4,804

4

5,2, LK, D

11 0,2730,6580,83313,64,43,6 1,1150,2731,1130,5

2,9

13,2

0,4

5,109, E

-0,4

3,5, D

2,5

4

11

4,042, B

0,40,5

0,8331,4560,40,4670,375

5,351

0,82,872

1,013

1,5

1,24, D

0,1230,8

1,27, D

1,7250,5690,50,129

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9.1.8 Screenshot of the original solver’s console worksheet

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9.1.9 Screenshot of the revised solver’s console worksheet

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9.2 References Bortfeldt, A., Wäscher, G., 2013. Constraints in container loading – A state-of-the-art review. European

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Croes, G. A. 1958. A Method for Solving Traveling-Salesman Problems. Exploration and Production

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Demir, E., Bektas, T. & Laporte, G. (2013). The bi-objective pollution-routing problem. European Journal

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provider Nabuurs B.V. Interfaces, 44(6), pp. 591-604.

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Edelkamp, S. (2012). Heuristic search: theory and applications Chapter 13. Waltham, MA: Morgan

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dimensional loading vehicle routing problem. Computers & Operations Research 36 (2009), pp. 655 –

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container loading problem. Transportation Science 40, pp. 342–350.

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Kimmel, P. (2003). Excel 2003 VBA Programmer's Reference. Indianapolis: Wriley Publishing

Laporte, G. 2009. Fifty Years of Vehicle Routing. Transportation Science 43(4), pp. 408 - 416

Laporte, G., Y. Nobert, M. Desrochers. 1985. Optimal routing under capacity and distance restrictions.

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green/

Lozano, C., Garcia-Martinez, C. 2010. Hybrid metaheuristics with evolutionary algorithms specializing in

intensification and diversification: Overview and progress report. Computers & Operations Research,

37(3), 2010, pp. 481-497

Salimifard, K., Shahbandarzaden, H., Raeesi, R. 2012. Green transportation and the role of operation

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Thompson, P. M., H. M. Psaraftis. 1993. Cyclic transfer algorithms for multi-vehicle routing and

scheduling problems. Operations Research. (41), pp. 935–946.

Wäscher, G., Haußner, H., Schumann, H., 2007. An improved typology of cutting and packing problems.

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