Abstract

We consider the last mile delivery system with roaming delivery locations and stochastic travel times. The problem is formulated as a two-stage stochastic programming model with recourses, its objective is to minimize the total travel time of serving a set of customers with roaming delivery locations under stochastic travel times. We propose an effective metaheuristic integrating a sampling strategy (sample average approximation, SAA) to solve stochastic model, our metaheuristic consists of random selection-greedy insertion (RSGI) and hybrid iterated greedy algorithm with route reoptimization and simulated annealing (HIGRR-SA). The computational study shows that our solution method has an advantage in terms of solution quality and computational time. The comparison of the stochastic and deterministic solutions shows that a significant reduction in expected travel time can be achieved as well as a smaller fluctuation considering stochastic information.

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