A Neighborhood Search and Set Cover Hybrid Heuristic for the Two-Echelon Vehicle Routing Problem

Abstract

The Two-Echelon Vehicle Routing Problem (2E-VRP) is a variant of the classical vehicle routing problem arising in the context of city logistics. In the 2E-VRP, freight from a main depot is delivered to final customers using intermediate facilities, called satellites. In this paper, we propose a new hybrid heuristic method for solving the 2E-VRP that relies on two components. The first component effectively explores the search space in order to discover a set of interesting routes. The second recombines the discovered routes into high-quality solutions. Experimentations on benchmark instances show the performance of our approach: our algorithm achieves high-quality solutions in short computational times and improves the current best known solutions for several large scale instances.