A dynamic vehicle routing problem with time-dependent travel times

In this paper we present a formulation for the dynamic vehicle routing problem with time-dependent travel times. We also present a genetic algorithm to solve the problem. The problem is a pick-up or delivery vehicle routing problem with soft time windows in which we consider multiple vehicles with different capacities, real-time service requests, and real-time variations in travel times between demand nodes. The performance of the genetic algorithm is evaluated by comparing its results with exact solutions and lower bounds for randomly generated test problems. For small size problems with up to 10 demands, the genetic algorithm provides almost the same results as the exact solutions, while its computation time is less than 10% of the time required to produce the exact solutions. For the problems with 30 demand nodes, the genetic algorithm results have less than 8% gap with lower bounds. This research also shows that as the uncertainty in the travel time information increases, a dynamic routing strategy that takes the real-time traffic information into account becomes increasingly superior to a static one. This is clear when we compare the static and dynamic routing strategies in problem scenarios that have different levels of uncertainty in travel time information. In additional tests on a simulated network, the proposed algorithm works well in dealing with situations in which accidents cause significant congestion in some part of the transportation network. (c) 2004 Elsevier Ltd. All rights reserved.