VRP
VRP
a r t i c l e i n f o a b s t r a c t
Article history: Highly perishable food products can lose an important part of their value in the distribution process. We
Received 27 October 2012 propose a novel multi-objective model that decouples the minimization of the distribution costs from the
Received in revised form 30 October 2013 maximization of the freshness state of the delivered products. The main objective of the work is to exam-
Accepted 10 November 2013
ine the relation between distribution scenarios and the cost-freshness trade-off. Small size instances
Available online 23 November 2013
adapted from the vehicle routing problem with time windows are solved with an -constraint method
and for large size instances a multi-objective evolutionary algorithm is implemented. The computational
Keywords:
experiments show the conflicting nature of the two objectives.
Routing
Food perishability
Ó 2013 Elsevier Ltd. All rights reserved.
Freshness
Multi-objective optimization
1. Introduction meals are ordered on the day before and customers are very
demanding in terms of expected delivery time and freshness of
Product perishability may manifest itself in a whole set of dif- the food received. Hence, if a customer orders duck with sauce,
ference forms. Products subject to perishability range from daily he is expecting that when he receives the meal, it will seem as
newspapers that lose their value soon after the day they are report- the sauce was just made and poured above the duck. On the other
ing, to flowers that look wilted sometimes even before reaching hand, if the customer orders an assortment of cheeses, he will be
stores, or blood used for transfusions. This last example sparked less sensible to how much time the product stayed in the truck be-
the study of the perishable inventory (Millard, 1960). Decision fore reaching him.
models valid for this broad range of perishable products should This operational distribution planning task fits into the vehicle
capture their specific nature distinguishing, for example, between routing problem (VRP) class of problems. In specific, we are deal-
products with and without best before dates (Amorim, Meyr, Alme- ing with a VRP with time windows (VRPTW) that has to consider
der, & Almada-Lobo, 2011). Highly perishable products have an the perishable nature of the products delivered. This hard prob-
important role in the operational distribution process, particularly lem (Savelsbergh, 1985) is to be modelled using a multi-objective
in the vehicle routing planning task. Examples of this kind of framework in which distribution costs are minimized and the
products are fruits, vegetables and prepared meals. In this category freshness of the products delivered to the customers is
of goods, the quality changing imposed by the perishability phe- maximized simultaneously. The first objective reflects explicitly
nomenon is noticeable by the entity receiving the products during the need of reducing operation costs and the second one
the planning horizon. Hence, in this paper, the decreasing value expresses the intangible customer value stemming from product
that customers attribute to a decreasing freshness state is freshness, which the company wants to grasp when designing
acknowledged. their routes.
Let us focus on the prepared meals segment to exemplify the In order to investigate the impact of product perishability in the
particularities of this vehicle routing problem that delivers highly distribution process a set of empirical hypotheses are postulated,
perishable goods. Consider a company specialized in gourmet pre- relating distribution scenarios and the cost-freshness trade-off.
pared meals based on a very busy city that services daily hundreds The customers’ typology, time windows width and perishability
of customers. Moreover, this company runs an own fleet of refrig- intensity are varied through these distribution scenarios. To test
erated trucks to perform the distribution of the products. The these hypotheses an -constraint method is employed to solve ex-
actly the well-known Solomon instances (Solomon, 1983) with 25
q
customers. Afterwards, the findings are validated for the instances
This manuscritp was processed by Area Editor Iris F.A. Vis.
⇑ Corresponding author. Tel.: +351 22 508 1735. with 100 customers using a multi-objective evolutionary algo-
E-mail addresses: [email protected] (P. Amorim), [email protected]
rithm (MOEA) as the exact methods fail to generate feasible
(B. Almada-Lobo). solutions.
0360-8352/$ - see front matter Ó 2013 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.cie.2013.11.006
224 P. Amorim, B. Almada-Lobo / Computers & Industrial Engineering 67 (2014) 223–233
The remainder of this paper is as follows. In the next section a the demand through a probability density function. Afterwards,
brief literature review is performed, and the mathematical formu- the integrated model is solved in an iterative scheme in which
lation that models this problem is then presented in Section 3. Sec- the VRP part is solved by a constructive heuristic followed by an
tion 4 formulates the hypotheses that establish the possible improvement one.
influences of distribution scenarios in the cost-freshness trade- In Table 1 we compare our work against the closest papers in
off. In Section 5 the methodology used to test the hypothesis for the literature, in terms of modelling characteristics (type of VRP
small and large instances is described. Afterwards, in Section 6 considered, number of objectives, perishability behaviour and
the results obtained through the computational experiments are number of products), solution methods and instances tested.
shown. Finally, the Conclusions section resumes the main findings From the literature review, it is clear that incorporating the per-
of this work and gives some hints for future research. ishability factor explicitly in the formulations seems to be of great
advantage (Akkerman, Farahani, & Grunow, 2010) since the cus-
tomers’ point of view is also taken into account. In our work, a mul-
2. Literature review ti-objective framework is used to tackle this phenomenon and,
hence, to give to the decision maker a whole set of equally efficient
The VRP field of research is very vast and proficuous. The same solutions, evidencing the trade-off between supply chain optimiza-
applies for the VRPTW extension. In this review, the focus will be tion and customer service related to the freshness aspect. Further-
kept on papers dealing with the VRP for perishable goods. The more, in the experiment design, the goal is to provide new insights
readers are referred to Laporte (2007) or Eksioglu, Vural, and Reis- into the relation between distribution scenarios and the aforemen-
man (2009) for more general VRP problems. tioned trade-off.
Some literature focus on different distribution problems related
with perishable food products but without considering explicitly 3. Mathematical formulation
the degradation of quality (losing of freshness) during transporta-
tion. In fact, these models could be most of the times applied to This section aims to present a formal definition of the Multi-
products without a perishable nature. The work of Tarantilis and Objective Vehicle Routing Problem with Time Windows dealing
Kiranoudis (2001) concentrates on the distribution of fresh milk with Perishability (MO-VRPTW-P). The formulation and notation
and formulates the problem as a heterogeneous fixed fleet VRP. is based on the VRPTW formulation proposed in Cordeau, Desaul-
The same authors (Tarantilis & Kiranoudis, 2002) solve a real- niers, Desrosiers, Solomon, and Soumis (2001).
world distribution problem of fresh meat as a multi-depot VRP. The MO-VRPTW-P trades-off the optimal design of routes and
Faulin (2003) implements a hybrid algorithm procedure that uses the freshness state of the delivered products. A set K of identical
a combination of heuristics and exact algorithms to find a solution fixed capacity vehicles indexed by k ¼ 1; . . . ; m initially located at
to a VRP with constraints enforcing narrow time windows and a depot are available to deliver perishable food goods to a set N
strict delivery quantities. According to the author, these delivery of customers i; j ¼ 1; . . . ; n through a set of arcs A. The number of
scenarios are usually the case in the agribusiness industry. vehicles m is enough to always guarantee a feasible solution. The
Concerning the articles modelling perishability explicitly, Os- VRPTW structure can be defined on a direct graph G ¼ ðV; AÞ with
vald and Stirn (2008) extend a heuristic proposed by the first V ¼ N [ f0; n þ 1g, where the depot is simultaneously represented
author in a previous work to solve the problem of distributing fresh by the two vertices 0 and n þ 1 and, therefore, jVj ¼ n þ 2. Each
vegetables in which perishability represents a critical factor. The possible arc ði; jÞ has an associated time and cost that is related
problem is formulated as a VRPTW with time-dependent travel to the euclidean distance of the vertices that it connects to. Each
times. The objective function minimizes the distance and time customer has a demand that needs to be satisfied for a certain
travelled, the delay costs for servicing late a customer and the costs number of products. Without loss of generality, these products
related to perishability. In this model, the perishability costs are are of identical size, and they have different deterministic shelf-
calculated by multiplying the load transported in each arc by the lives. It is assumed that as soon as the vehicle departs the depot,
time needed to do it. Hsu, Hung, and Li (2007) consider the all products that it is carrying are at their maximum freshness.
randomness of the perishable food delivery process and present a Moreover, customers want their requests available within a strict
stochastic VRPTW model that is further extended to consider time window and they need a certain time to be served. From a
time-dependent travel times. The objective function of this work modelling point of view we will just account for the shelf-life of
is very similar to that of Osvald and Stirn (2008), but the calcula- the products within a customer order that deteriorate the most.
tion of costs due to perishability is done in a stochastic manner. Thus, by maximizing the freshness of the products delivered, it is
The authors attribute probability density functions to determine ensured that the worst case is tackled for each customer and,
the chances of having spoiled products due to the opening of the therefore, all the other products still have some remaining shelf-
vehicle door and to the travel time. The problem is solved by a heu- life when delivered.
ristic procedure. Chen, Hsueh, and Chang (2009) integrate produc- A feasible solution for this problem implies a collection of
tion scheduling with the VRPTW for perishable food products. In routes that correspond to paths starting at vertex 0 and ending
the distribution part, they consider a value decay on the products at vertex n þ 1. These routes have to ensure that each customer
distributed that will influence the price paid by the retailer to is visited exactly once satisfying simultaneously its demand and
the transporter. This model has a stochastic nature by defining time window. Furthermore, it is not admissible that any of the
Table 1
Comparison of the VRP related works dealing with perishability.
Author VRP-type Number of Obj. Perishability behaviour Products Solution method Instances
Chen et al. (2009) STW 1 Random Multiple Heuristic Solomon (1983)
Osvald and Stirn (2008) HTW; TD 1 Deterministic Single Heuristic Solomon (1983)
Hsu et al. (2007) STW; TD 1 Random Single Heuristic Tailor-Made
This paper HTW 2 Deterministic Multiple MOEA Solomon (1983)
STW: soft TW, HTW: hard TW, TD: time dependent travel time.
P. Amorim, B. Almada-Lobo / Computers & Industrial Engineering 67 (2014) 223–233 225
Indices
k vehicles
i; j vertices
ði; jÞ arcs
Parameters
C vehicle capacity Fig. 1. Representative scheme of the freshness objective function.
si service time of customer i
The objective function (1) minimizes the total routing cost, which is
cij ðtij Þ travel cost (time) from customer i to customer j
the usual objective in the VRP related problems. The objective func-
ai starting time of time window of customer i
tion (2) maximizes the average freshness of all requests by stan-
bi finishing time of time window of customer i
dardizing the remaining shelf-life of the most deteriorating
di demand of customer i
product of each customer (see expression (10)). The value of this
sli shelf-life of the most perishable product contained in
objective varies between 0% and 100%, where 100% corresponds
the request of customer i
to the maximum possible freshness. We assume that when a vehicle
Decision variables leaves the depot the freshness of the products inside is at its max-
xkij equals 1 if arc ði; jÞ is crossed by vehicle k, 0 otherwise imum. Naturally, we are assuming that all the upstream supply
time at which vehicle k starts servicing vertex i, 0 if chain planning is based on the distribution plans and follows the
wki
vertex i is not visited by vehicle k Just-in-Time (JIT) philosophy. Thus, in case customer i is serviced
fr i freshness level for customer i request upon delivery by vehicle k, the freshness of the product delivered to the customer
is obtained by subtracting to the maximum shelf-life, sli , the time it
takes to start servicing customer i, given by the term wki wk0 . Divid-
ing this value by sli the freshness is converted to a value that is be-
In the preprocessing of the arcs, besides eliminating arcs ði; jÞ
tween 0% and 100%. In the second case, when the customer i is not
due to temporal reasons (in case ai þ si þ t ij > bj ), and to capacity
serviced by vehicle k, constraints (10) are loose (in these constraints
reasons (in case di þ dj > C), arcs are also eliminated due to perish-
we could use the big number P equal to b0 a0 ). In Fig. 1, a visual
ability reasons (in case si þ t ij > slj ).
representation of this objective function is given.
Let dþ ðiÞ ¼ fj : ði; jÞ 2 Ag and d ðjÞ ¼ fi : ði; jÞ 2 Ag denote the set
Constraints (3) state that each customer is visited exactly once,
of successors and predecessors of i and j, respectively. The mathe-
while constraints (4)–(6) ensure that each vehicle is used and that
matical formulation for the MO-VRPTW-P can be stated as follows:
flow conservation is satisfied at each customer vertex. The consis-
MO-VRPTW-P tency of the time variables wki is ensured through constraints (7),
XX while the time windows are imposed by (8). Again, these last con-
minf 1 ¼ cij xkij ð1Þ straints also enforce wki to be 0 in case customer i is not visited by
k2K ði;jÞ2A
vehicle k. Regarding the vehicle capacity, constraint (9) enforces it
1X to be respected. Finally, constraints (11) ensure that customer re-
max f 2 ¼ fr ð2Þ
N i2N i quests are satisfied with products that are not spoiled (i.e. that still
have some degree of freshness).
subject to :
XX
xkij ¼ 1 8i 2 N ð3Þ Remark 1. Formulation (1)–(12) is nonlinear because of con-
k2K j2dþ ðiÞ straints (7) and (11). The first constraint can be linearized as
X follows:
xk0j ¼ 1 8k 2 K ð4Þ
j2dþ ð0Þ
X X wkj P wki þ si þ t ij Mij 1 xkij 8k 2 K; ði; jÞ 2 A; ð13Þ
xkij xkji ¼ 0 8k 2 K; j 2 N ð5Þ
i2d ðjÞ i2dþ ðjÞ
where Mij ¼ maxf0; bi þ si þ t ij g is a constant. We have changed the
X calculation of this parameter from the original formulation of Cor-
xki;nþ1 ¼ 1 8k 2 K ð6Þ deau et al. (2001). In that formulation M ij is equal to
i2d ðnþ1Þ maxf0; bi þ si þ tij aj g. However, for the case where a vehicle does
not pass neither at i nor at j then this parameter would force aj 6 bi
xkij wki þ si þ t ij wkj 6 0 8k 2 K; ði; jÞ 2 A ð7Þ
since both wki and wkj would be 0 due to constraints (8). Clearly, this
X X equation does not hold for every instance and so the overall model
ai xkij 6 wki 6 bi xkij 8k 2 K; i 2 V ð8Þ
j2dþ ðiÞ j2dþ ðiÞ
becomes ill-defined.
XX The linearization of constraints (11) is as follows:
di xkij 6 C 8k 2 K ð9Þ
þ
wk0 þ sli wki P 0 8k 2 K; i 2 N: ð14Þ
i2N j2d ðiÞ
P
wk0 þ sli wki þ P 1 j2dþ ðiÞ xkij
fri 6 8k 2 K; i 2 N ð10Þ 4. Relations between distribution scenarios and the cost-
sli
X freshness trade-off
xkij wk0 þ sli wki P 0 8k 2 K; i 2 N ð11Þ
j2dþ ðiÞ From the modelling of the MO-VRPTW-P we predict that to ob-
tain an increase in the freshness of the products delivered, a higher
xkij 2 f0; 1g; fr i ; wki P 0: ð12Þ
distribution cost needs to be incurred. Moreover, the behaviour of
226 P. Amorim, B. Almada-Lobo / Computers & Industrial Engineering 67 (2014) 223–233
the relation between freshness and distribution cost probably de- the relative cost increase for each freshness level when increasing
pends on various factors, such as customers typologies, time win- perishability intensity.
dows width that each customer require to be served and the To understand how this method works let us first define P1 ð2 Þ
perishability intensity of the food products delivered. as:
In order to organize and to guide the computational experi-
min f 1
ments needed to understand the relation between the cost-fresh-
ness trade-off and distribution scenarios, a set of intuitive subject to :
hypotheses were raised covering the aforementioned factors influ- ð3Þ—ð6Þ
encing the problem under study. Fig. 2 guides the following ð8Þ—ð10Þ
hypotheses. ð13Þ and ð14Þ
The first two more general hypotheses are as follows:
f 2 P 2 ð15Þ
H 1. For a given scenario, the distribution cost incurred to satisfy
an increasing freshness level increases in a non-decreasing fashion. xki;j 2 f0; 1g; fri ; wki P 0; ð16Þ
Fig. 6. Constraint Route Inversion Mutation example. Fig. 7. Pareto front for instance C101 with 50% of perishability and vehicles used.
P. Amorim, B. Almada-Lobo / Computers & Industrial Engineering 67 (2014) 223–233 229
Table 3
Results for H 4–H 5.
Table 4
Parameters of the MOEA.
Fig. 8. Pareto fronts for instances C101 with 50% and 100% of perishability Population size 300
intensity. Number of generations 350
Crossover rate 0.9
Mutation rate 0.1
applied to each instance with a maximum number of 20 iterations,
changing iteratively the freshness level with a 5% step (0%, 5%, . . .,
95%, 100%). Each MIP had a 10 min time limit and was solved on a
Cluster IBM eServer 1350 equipped with CPLEX 12.1. Out of the 80
instances we were able to obtain 34 instances with an optimality
gap bellow 10% for the Low scenarios and the lowest freshness le-
vel (the extensive results are presented in Appendix A). These are
the instances used to confirm the hypothesis and on which the sta-
tistical tests were performed.
Concerning the first hypothesis, H 1, which relates the conflict-
ing nature of the objectives, Fig. 7 shows the Pareto front for one of
the instances that is representative of the behaviour observed for
the other instances. Clearly, in order to achieve a higher freshness
level, higher distribution costs are incurred, confirming the
hypothesis (see detailed results for this instance in Appendix C).
Fig. 9. Pareto fronts of C1 instances for the 3 levels of perishability intensity.
In H 2 we intended to assess the impact of the number of vehicles
on achieving better freshness conditions of the products delivered.
Hence, for every step increase of the freshness level, the number of
vehicles used was calculated. Again, Fig. 7 is representative of the ity intensity was about 50% compared with 100%. Fig. 8 shows an
behaviour of all instances and it is noticeable the increasing usage example of the dominance of the Low perishability scenario over
of vehicles to satisfy a higher freshness level. In fact, to increase the High one for a representative instance. In Table 2 the average
from 60% to 90% the freshness level, it is necessary to multiply relative cost increase for all instances considered when shifting
by four the number of vehicles. from Low to High perishability is presented. This measure is crucial
Derived from the third hypothesis, the Pareto front from the to test the last two hypotheses (see Table 3).
Low perishability scenario should weakly dominate the one from To test H 4–H 5 we statistically assess the respective average
the High perishability scenario. In testing H 3 it was observed that differences calculated a priori. Table 5 shows these results. In order
within the 283 pairs of solutions analysed (a pair is found in the to understand the validity of H 4 the difference between instances
same instance comparing the cost for the same freshness level with narrow time windows (type 1) and large time windows (type
for perishability intensities of 100% and 50%), the cost for achieving 2) was calculated for the two typologies (C and R). The results
the same freshness level is systematically higher when perishabil- indicate a higher cost increase for type 1 customers than for type
2, when the perishability intensity augments. This difference is
statistically significant for both types of topologies. However,
Table 2 regarding H 5 no conclusions can be drawn. For both types of time
Percentage average cost increase for shifting from Low to the High perishability
intensity.
windows width no significant different is found across the
customer typologies.
Instance % Average cost increase
C101 58
C102 74
C105 59
C106 61
C107 62
C201 17
C202 43
C205 11
C206 18
C207 12
R101 16
R102 32
R105 25
R106 99
R111 123
R201 12
R202 46
Fig. 10. Pareto fronts of R1 instances for the 3 levels of perishability intensity.
P. Amorim, B. Almada-Lobo / Computers & Industrial Engineering 67 (2014) 223–233 231
Fig. 11. Pareto fronts of C2 instances for the 3 levels of perishability intensity. Fig. 14. Pareto fronts of C2 and R2 instances having 100% and 50% levels of
perishability.
7. Conclusions
The main objective of the paper was to understand the relation- Acknowledgement
ship between different distribution scenarios and the cost-fresh-
ness trade-off. Therefore, guided by this aim, a set of hypotheses The first author appreciate the support of the FCT Project PTDC/
were formulated and tested for small and large size instances EGE-GES/104443/2008 and the FCT Grant SFRH/BD/68808/2010.
adapted from the work of Solomon (1983). The small instances This work was also partially financed by the ERDF – European
gave the statistical validity of the experiments as they were solv- Regional Development Fund through the COMPETE Programme
able close to optimality and the large instances explored the poten- (operational programme for competitiveness) and by National
tial of applicability of this approach in a real-world scenario. Four Funds through the FCT – Fundação para a Ciência e a Tecnologia
out of the five hypotheses that were formulated proved to be true (Portuguese Foundation for Science and Technology) within
testing the 25 customer instances. The main conclusions point out project «FCOMP-01-0124-FEDER-037281»; and by the Project
that, first, there is an evident trade-off between the mentioned «NORTE-07-0124-FEDER-000057», supported by the North Portu-
objectives; second, time windows have a strong impact on the gal Regional Operational Programme (ON.2 – O Novo Norte), under
freshness levels of products delivered, hence, large time windows the National Strategic Reference Framework (NSRF), through the
lead to less spoilage; finally, regarding customer typology no con- ERDF, and by national funds, through FCT.
clusions could be taken. For the large instances these conclusions
were partially validated. Appendix A. Results of the small size instances for the lowest
We use an exact method – the -constraint method – for the freshness level
small size instances and we propose two versions of a MOEA to
solve instances with 100 customers. While the first alternative Table A.6 presents the results of the small size instances for the
hybridizes the algorithm with a LP solver, the second alternative lowest freshness level.
speeds up the MOEA performance by making use of a tailored algo-
rithm to obtain the freshness value. Appendix B. Results of the large size instances for the lowest
Future work shall be devoted to test the proposed model on freshness level
real-world instances. Moreover, it could be interesting to under-
stand the effect of dropping the JIT assumption and integrate this Table A.7 presents the results of the large size instances for the
model with production scheduling decisions. lowest freshness level.
Table A.7
Results of the large size instances for the lowest freshness level.
Table A.6
Original Low Medium High Optimal value
Results of the small size instances for the lowest freshness level.
Instance perishability perishability perishability (without
Original Low High Optimal value (without perishability
instance perishability perishability perishability considerations) considerations)
Tables A.8 and A.9 present the results for instance C101 with 25
and 100 customers, respectively.