1989
DOI: 10.1287/trsc.23.3.166
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Vehicle Routing with Stochastic Demands: Properties and Solution Frameworks

Abstract: This paper considers the vehicle routing problem with stochastic demands. The objective is to provide an overview of this problem, and to examine a variety of solution methodologies. The concepts and the main issues are reviewed along with some properties of optimal solutions. The existing stochastic mathematical programming formulations are presented and compared and a new formulation is proposed. A new solution framework for the problem using Markovian decision processes is then presented.

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Cited by 240 publications
(126 citation statements)
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“…Bertsimas and Simchi-Levi [9] surveyed the development in the VRPSD with an emphasis on the insights gained and on the algorithms proposed. Besides the conventional stochastic programming framework, a Markov decision process for single stage and multistage stochastic models were introduced to investigate the VRPSD in [17,16]. More recently, a re-optimization type routing policy for the VRPSD was introduced by [41].…”
Section: Svrps With Stochastic Customers and Demandsmentioning
confidence: 99%
“…Bertsimas and Simchi-Levi [9] surveyed the development in the VRPSD with an emphasis on the insights gained and on the algorithms proposed. Besides the conventional stochastic programming framework, a Markov decision process for single stage and multistage stochastic models were introduced to investigate the VRPSD in [17,16]. More recently, a re-optimization type routing policy for the VRPSD was introduced by [41].…”
Section: Svrps With Stochastic Customers and Demandsmentioning
confidence: 99%
“…This approach was adopted here, modelling average typical loads, as it was outside the scope of this study to consider how rounds would have to be adjusted in practice to handle seasonal variation. The reader is referred to Dror et al (1989) for a discussion of stochastic vehicle routing problems. The waste data were aggregated to postcode level, with the number of houses in each postcode area and the average round weight being used to calculate the weight of waste to be collected from each postcode.…”
Section: Data Collection and Preparationmentioning
confidence: 99%
“…In this study, we consider a particular SVRP that is VRP with Stochastic Demands, denoted by the abbreviation VRPSD, where the demand is stochastic. Dror et al [8] mentioned that there are two solution frameworks for Stochastic VRP (including VRPSD), namely stochastic programming and Markov decision process. Further in this study, we focus the discussion on the stochastic programming.…”
Section: Introductionmentioning
confidence: 99%
“…Dror et al [8] introduce theoretically a new recourse defined by a return to the depot whenever the vehicle is unable to satisfy the demand (the capacity becomes exceeded) and resume the service at the customer on the planned route where route failure had occurred. Savelsbergh and Goetschalckx [15] simplified the recourse to achieve computational efficiency assuming at most one failure in a route.…”
Section: Introductionmentioning
confidence: 99%
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