A rolling horizon algorithm for auto-carrier transportation |
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Institution: | 1. School of Electrical and Electronic Engineering, Nanyang Technological University, Singapore;2. School of Science and Engineering, The Chinese University of Hong Kong, Shenzhen, China;3. Thayer School of Engineering, Dartmouth College, NH, United States;1. Department of Industrial Engineering and Management, Shanghai Jiao Tong University, Shanghai 200240, China;2. Robert H. Smith School of Business, University of Maryland, College Park, MD, 20742, USA |
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Abstract: | This paper introduces a rolling horizon algorithm to plan the delivery of vehicles to automotive dealers by a heterogeneous fleet of auto-carriers. The problem consists in scheduling the deliveries over a multiple-day planning horizon during which requests for transportation arrive dynamically. In addition, the routing of the auto-carriers must take into account constraints related to the loading of the vehicles on the carriers. The objective is to minimize the sum of traveled distances, fixed costs for auto-carrier operation, service costs, and penalties for late deliveries. The problem is solved by a heuristic that first selects the vehicles to be delivered in the next few days and then optimizes the deliveries by an iterated local search procedure. A branch-and-bound search is used to check the feasibility of the loading. To handle the dynamic nature of the problem, the complete algorithm is applied repeatedly in a rolling horizon framework. Computational results on data from a major European logistics service provider show that the heuristic is fast and yields significant improvements compared to the sequential solution of independent daily problems. |
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Keywords: | Vehicle routing Loading Auto-carrier Rolling horizon |
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