Routing Solutions for the Service Industry
First introduced by Dantzig and Ramser over 50 years ago, vehicle routing problems (VRP) have drawn the attention of both academic researchers and practitioners due to its difficult-to-solve nature and hence its attractiveness in theoretical research as well as wide applicability in real-world settings. Today VRP is probably one of the most widely encountered types of problems for routing and distribution in the service industry. Examples include furniture delivery to a customer’s address, scheduling of bus service pick-up/drop-off for students or company personnel, or service technician routing. The goal of this chapter is to provide a background, mathematical model and various solution approaches on a more commonly encountered variant of the problem, namely the VRP with Time Windows (VRPTW). The authors also present three case studies from their experience in the service industry that are real applications of VRPTW. For each study, they describe the overall approach and methodology, and the positive contributions to the respective company which has implemented enterprise-scale GIS-based systems around the distribution problem of interest.