Highlights A new real-life inspired problem combining zone-based pricing with vehicle routing. Customers accept the service if the zone price is below their individual thresholds. Pricing and routing decisions to maximize total revenue minus routing cost. Mathematical modeling of the proposed problem. Branch-and-price algorithm that finds optimum for instances up to 50 customers.

    Abstract In this paper we study the vehicle routing problem with zone-based pricing where the transporter defines a service price for all customers in a geographical zone. Each customer accepts or rejects the transporter’s offer according to a personal threshold value. Once the customer accepts the offer, the delivery service becomes compulsory. Two decisions need to be made: the price per zone and the routing to serve all customers that accept that price. The objective is to maximize the profit, which is the difference of total service revenue and the routing costs. We present a mathematical model for the problem and propose a branch-and-price algorithm. A numerical analysis shows promising results on the proposed set of instances.


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    Titel :

    Vehicle routing problem with zone-based pricing


    Beteiligte:


    Erscheinungsdatum :

    2021-05-22




    Medientyp :

    Aufsatz (Zeitschrift)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch




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