Branch-Cut-and-Price for the Robust Capacitated Vehicle Routing Problem with Knapsack Uncertainty

Abstract

Capacitated vehicle routing problems are widely studied combinatorial optimization problems, and branch-and-cut-and-price algorithms can solve instances harder than ever before. These models, however, neglect that demands volumes are often not known with precision when planning the vehicle routes, thus incentivizing decision makers to significantly overestimate the volumes for avoiding coping with infeasible routes. A robust formulation that models demand uncertainty through a knapsack polytope is considered. A new branch-and-cut-and-price algorithm for the problem is provided, which combines efficient algorithms for the problem with no uncertainty with profound results in robust combinatorial optimization and includes novel heuristics and new valid inequalities. The numerical results illustrate that the resulting approach is two orders of magnitude faster that the best algorithm from the literature, solving twice as many instances to optimality.