The Two-Echelon Vehicle Routing Problem with Transshipment Nodes and Occasional Drivers: Formulation and Adaptive Large Neighborhood Search Heuristic

Abstract

This research introduces a new variant of the two-echelon vehicle routing problem (2EVRP) called the two-echelon vehicle routing problem with transshipment nodes and occasional drivers (2EVRP-TN-OD). In addition to city freighters in the second-echelon network, a set of occasional drivers (ODs) is available to serve customers. ODs are the basis of a crowd-shipping system in which crowds with planned trips are willing to take detours to deliver packages in exchange for some compensation. To serve customers, ODs collect the assigned packages at either satellite served by first-echelon trucks or transshipment nodes served by city freighters. We formulate this problem as a mixed-integer nonlinear programming model and develop an adaptive large neighborhood search (ALNS) to solve it. New problem-specific destroy and repair operators and a tailored local search procedure are embedded into ALNS to deal with the problem’s unique characteristics. The experiments show that the proposed ALNS effectively solves 2EVRP-TN-OD by outperforming Gurobi in terms of both solution quality and computational time. Moreover, the experiments confirm that employing occasional drivers leads to lower operational costs. Sensitivity analyses on the characteristics of occasional drivers and the impact of transshipment nodes are presented as interesting managerial insights from 2EVRP-TN-OD.