solving real-world vehicle scheduling and routing problems

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Solving Real-World Vehicle Scheduling and Routing Problems Jens Gottlieb SAP AG Walldorf, Germany [email protected] sample for a picture in the title slide

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Page 1: Solving Real-World Vehicle Scheduling and Routing Problems

Solving Real-WorldVehicle Scheduling andRouting Problems

Jens Gottlieb

SAP AGWalldorf, [email protected]

sample for a picture

in the title slide

Page 2: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 2

Vehicle Routing @ SAP

SAP offers two products covering transportation planning functionality:Since 2001: SAP Supply Chain Management, APO TP/VS(Advanced Planner and Optimizer, Transportation Planning / Vehicle Scheduling)Since 2007: SAP Transportation Management

SAP offers one product for service management and technician scheduling:SAP Multi Resource Scheduling

Since 2001, SAP has developed and continuously improved an optimization algorithm for thevehicle scheduling and routing problem, which is the planning engine in above products

Page 3: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 3

1. The vehicle scheduling and routing problem2. Solution approach3. Selected scenarios4. Conclusion

Agenda

sample for a picture

in the divider slide

Page 4: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 4

The vehicle scheduling and routing problem:Orders

Order-based modelSource and destination location per order

Priority (Non-delivery costs)Loading dimensions (weight, volume, ...)Characteristics (hazardous goods, frozen, ...)Loading/unloading durations (depending on vehicle)

Order 4

Order 3

Order 2Order 1

6

24

1

3

5 Order 5

Page 5: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 5

Example 1:Orders in classical CVRP scenario

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 6

Example 2:Orders in selected customer scenario

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 7

Time windows per order (hard and soft) for loading and unloading

Loading requires outbound handling resource at source locationBusiness hoursCapacities

Unloading requires inbound handling resource at destination locationBusiness hoursCapacities

The vehicle scheduling and routing problem:Time restrictions per order

time

costs

lateloading

earlyloading

[ ][ ]late

unloadingearly

unloading

[ ][ ]

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 8

The vehicle scheduling and routing problem:Vehicles

Travel capabilities (duration, distance, distance cost per lane)

Characteristics (cooled, available for hazardous goods, …)

Break calendar

Constraints:Start location, end locationDurationDistanceNumber of stopsLoad capacity (weight, volume, …), may depend on number of stops

Costs:Fixed costsDurationDistanceNumber of stopsQuantity costs (distance x load)

Page 9: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 9

Example:Schedule for a selected customer scenario

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 10

The vehicle scheduling and routing problem:Trailers and compartments (1)

C1 C2 C3 C4

Vehicle

C5 C6 C7 C8

Trailer

Vehicle Combination

Page 11: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 11

The vehicle scheduling and routing problem:Trailers and compartments (2)

Trailers cannot move without vehicle

Coupling/uncoupling activities

Constraints for trailers like for vehiclesStart location, end locationDuration, distance, number of stops, load (weight, volume, …)

Costs for trailers like for vehiclesFixed costs, duration, distance, number of stopsQuantity costs (distance x load)

Constraint for vehicle combinations: load (weight, volume, …)

CompartmentsEach vehicle/trailer has fixed number of compartmentsLoad capacity per compartment (weight, volume, …)Fixed versus flexible load capacity

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 12

Hub locations (= transshipment locations):Indirect shipment via hub(s) versus direct shipment

Minimum and maximum waiting time at hub

The Vehicle Scheduling and Routing Problem:Hubs

H1 2

1 H2

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 13

Example:Selected customer scenario involving 5 hubs

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 14

Incompatibility constraints:Between order characteristicsBetween vehicle characteristics and order characteristicsBetween trailer characteristics and order characteristicsBetween compartment characteristics and order characteristicsBetween vehicle characteristics and trailer characteristicsBetween order characteristics and hubsBetween vehicle characteristics and hubsBetween trailer characteristics and hubs

Schedule vehicles:Route is fixed a prioriSchedule is fixed a priori

The vehicle scheduling and routing problem:Incompatibilities and schedule vehicles

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 15

The vehicle scheduling and routing problem:Summary

Goal:Determine transportation plan that minimizes total costs and satisfies all constraints.

A transportation plan is characterized by the following decisions:per order: deliver or not?per delivered order: select legs (= path through hub network)per selected leg: select vehicle/trailer and compartmentper vehicle/trailer:– select relative ordering of activities (= routing)– assign start time to each activity (= scheduling)

Total costs = weighted sum of costs fororders (non-delivery, earliness, lateness), andvehicles and trailers (fixed, duration, distance, stops, quantity)

Page 16: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 16

1. The vehicle scheduling and routing problem2. Solution approach3. Selected scenarios4. Conclusion

Agenda

sample for a picture

in the divider slide

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 17

Solution approach:Evolutionary local search

Population

Initialization

Selection

VariationSelection

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 18

Solution approach:Ingredients of evolutionary local search

InitializationGreedy insertion heuristics + local search

VariationUses > 20 different atomic variation operators, grouped into:

Assignment moves (e.g. insert an order, delete an order, delete a vehicle)Routing moves (e.g. 2-opt, variants of Or-opt, 3-opt, 4-opt)Scheduling moves

Moves are applied subsequently and with certain probabilities, using the following concepts:Local searchRandomnessIterated local searchVariable neighbourhood searchTabu search

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 19

Solution approach:Key features

Direct solution representation

Only feasible solutions

Local search

Small population

Many specialized atomic move operators

Orchestration of atomic moves in the variation step

Page 20: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 20

1. The vehicle scheduling and routing problem2. Solution approach3. Selected scenarios4. Conclusion

Agenda

sample for a picture

in the divider slide

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© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 21

Using the optimizer

Input data specified by selection profile

Different operating modesBatch versus interactive startLong runs at night versus short runs during the dayFrom scratch versus incrementallyPlanning horizon ranges from a few hours to several weeks

Run-time limits vary from a few minutes to several hours

Human transportation planner processes the optimizer‘s result:reviewing it,manipulating it interactively if needed, andreleasing it to transportation execution

Side-effect of optimizer: Check input dataUnexpected results typically indicate that input data are not clean.

Page 22: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 22

Characteristics of selected customerscenarios

Scenario 1 2 3 4 5 6 7 8 9

Orders 75 255 662 778 804 1177 2029 7040 13569

Loading dimensions 1 1 2 1 3 2 5 4 3

Locations 30 199 55 8 32 565 128 1873 14

Hubs 9 5

Sources 9 5 11 1 1 1 1 1 1

Destinations 14 194 46 7 31 559 127 1872 13

Vehicle types 4 38 9 7 3 10 10 2

Vehicles 58 93 301 281 680 2701 2011 100

Schedule vehicle types 1 6

Schedule vehicles 38 11

Business hours 2 196 1 29 64

Capacitive resources 54 32

Page 23: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 23

1. The vehicle scheduling and routing problem2. Solution approach3. Selected scenarios4. Conclusion

Agenda

sample for a picture

in the divider slide

Page 24: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 24

Conclusion

SummaryReal-world problems are complexHeterogeneous instances of the same abstract problemOne algorithm for the abstract problem, applicable to arbitrary special instances of ourcustomersMetaheuristics work well in practice

OutlookContinuous extension of functionalityHub networks with several „parallel“ hubs and more than 2 „sequential“ hubsDifferent variants of trailer scenarios, depending on frequency of coupling and uncoupling

Page 25: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 25

Thank you!

Page 26: Solving Real-World Vehicle Scheduling and Routing Problems

© SAP 2008 / Solving Real-World Vehicle Scheduling and Routing Problems, Jens Gottlieb, VIP 2008, Oslo, 12-14 June 2008, Page 26

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