A Solution Method for a Twodispatch Delivery Problem with Stochastic Customers
 Raymond K. Cheung,
 Dongsheng Xu,
 Yongpei Guan
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We study a vehicle routing problem in which vehicles are dispatched multiple times a day for product delivery. In this problem, some customer orders are known in advance while others are uncertain but are progressively realized during the day. The key decisions include determining which known orders should be delivered in the first dispatch and which should be delivered in a later dispatch, and finding the routes and schedules for customer orders. This problem is formulated as a twostage stochastic programming problem with the objective of minimizing the expected total cost. A worstcase analysis is performed to evaluate the potential benefit of the stochastic approach against a deterministic approach. Furthermore, a samplebased heuristic is proposed. Computational experiments are conducted to assess the effectiveness of the model and the heuristic.
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 Title
 A Solution Method for a Twodispatch Delivery Problem with Stochastic Customers
 Journal

Journal of Mathematical Modelling and Algorithms
Volume 6, Issue 1 , pp 87107
 Cover Date
 20070301
 DOI
 10.1007/s1085200690514
 Print ISSN
 15701166
 Online ISSN
 15729214
 Publisher
 Kluwer Academic Publishers
 Additional Links
 Topics
 Keywords

 vehicle routing
 stochastic customers
 stochastic programming
 90B06
 90C15
 90C59
 90C10
 Industry Sectors
 Authors

 Raymond K. Cheung ^{(1)}
 Dongsheng Xu ^{(1)}
 Yongpei Guan ^{(2)}
 Author Affiliations

 1. Department of Industrial Engineering and Logistics Management, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong
 2. School of Industrial Engineering, The University of Oklahoma, Norman, OK, 73019, USA