This paper proposes formulations and a hybrid meta‐heuristic algorithm to solve the on‐line vehicle routing problem (VRP) for minimizing costs related to economics and emissions. The on‐line VRP considers real‐time demands. Vehicle emissions are affected by travel speed and vehicle load. A hybrid meta‐heuristic algorithm GA‐Tabu is designed to solve the on‐line VRP and a solution framework using DynaTAIWAN simulation is implemented. The numerical results show CO2 can be reduced by combining the emission factors into the objective function. Also, the route updates for on‐line demands are analyzed and the performance measures of the on‐line VRP are investigated by using various on‐line demands.
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