An approximate dynamic programming approach to urban freight distribution with batch arrivals

Wouter van Heeswijk; Martijn Mes; Marco Schutten

doi:10.1007/978-3-319-24264-4_5

An approximate dynamic programming approach to urban freight distribution with batch arrivals

Wouter van Heeswijk, Martijn Mes, Marco Schutten

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

4 Citations (Scopus)

33 Downloads (Pure)

Abstract

We study an extension of the delivery dispatching problem (DDP) with time windows, applied on LTL orders arriving at an urban consolidation center. Order properties (e.g., destination, size, dispatch window) may be highly varying, and directly distributing an incoming order batch may yield high costs. Instead, the hub operator may wait to consolidate with future arrivals. A consolidation policy is required to decide which orders to ship and which orders to hold. We model the dispatching problem as a Markov decision problem. Dynamic Programming (DP) is applied to solve toy-sized instances to optimality. For larger instances, we propose an Approximate Dynamic Programming (ADP) approach. Through numerical experiments, we show that ADP closely approximates the optimal values for small instances, and outperforms two myopic benchmark policies for larger instances. We contribute to literature by (i) formulating a DDP with dispatch windows and (ii) proposing an approach to solve this DDP.

Original language	English
Title of host publication	Computational Logistics
Subtitle of host publication	6th International Conference, ICCL 2015, Delft, The Netherlands, September 23-25, 2015, Proceedings
Editors	Francesco Corman, Stefan Voβ, Rudy R. Negenborn
Place of Publication	Cham
Publisher	Springer
Pages	61-75
ISBN (Electronic)	978-3-319-24264-4
ISBN (Print)	978-3-319-24263-7
DOIs	https://doi.org/10.1007/978-3-319-24264-4_5
Publication status	Published - 2015
Event	6th International Conference on Computational Logistics, ICCL 2015 - Delft, Netherlands Duration: 24 Aug 2015 → 24 Aug 2015 Conference number: 6

Publication series

Name	Lecture Notes in Computer Science
Publisher	Springer
Volume	9335
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Conference

Conference	6th International Conference on Computational Logistics, ICCL 2015
Abbreviated title	ICCL
Country/Territory	Netherlands
City	Delft
Period	24/08/15 → 24/08/15

Keywords

Urban distribution
Transportation planning
Consolidation
Approximate dynamic programming

Access to Document

10.1007/978-3-319-24264-4_5

Cite this

van Heeswijk, W., Mes, M., & Schutten, M. (2015). An approximate dynamic programming approach to urban freight distribution with batch arrivals. In F. Corman, S. Voβ, & R. R. Negenborn (Eds.), Computational Logistics: 6th International Conference, ICCL 2015, Delft, The Netherlands, September 23-25, 2015, Proceedings (pp. 61-75). (Lecture Notes in Computer Science; Vol. 9335). Springer. https://doi.org/10.1007/978-3-319-24264-4_5

van Heeswijk, Wouter ; Mes, Martijn ; Schutten, Marco. / An approximate dynamic programming approach to urban freight distribution with batch arrivals. Computational Logistics: 6th International Conference, ICCL 2015, Delft, The Netherlands, September 23-25, 2015, Proceedings. editor / Francesco Corman ; Stefan Voβ ; Rudy R. Negenborn. Cham : Springer, 2015. pp. 61-75 (Lecture Notes in Computer Science).

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abstract = "We study an extension of the delivery dispatching problem (DDP) with time windows, applied on LTL orders arriving at an urban consolidation center. Order properties (e.g., destination, size, dispatch window) may be highly varying, and directly distributing an incoming order batch may yield high costs. Instead, the hub operator may wait to consolidate with future arrivals. A consolidation policy is required to decide which orders to ship and which orders to hold. We model the dispatching problem as a Markov decision problem. Dynamic Programming (DP) is applied to solve toy-sized instances to optimality. For larger instances, we propose an Approximate Dynamic Programming (ADP) approach. Through numerical experiments, we show that ADP closely approximates the optimal values for small instances, and outperforms two myopic benchmark policies for larger instances. We contribute to literature by (i) formulating a DDP with dispatch windows and (ii) proposing an approach to solve this DDP.",

keywords = "Urban distribution, Transportation planning, Consolidation, Approximate dynamic programming",

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van Heeswijk, W , Mes, M & Schutten, M 2015, An approximate dynamic programming approach to urban freight distribution with batch arrivals. in F Corman, S Voβ & RR Negenborn (eds), Computational Logistics: 6th International Conference, ICCL 2015, Delft, The Netherlands, September 23-25, 2015, Proceedings. Lecture Notes in Computer Science, vol. 9335, Springer, Cham, pp. 61-75, 6th International Conference on Computational Logistics, ICCL 2015, Delft, Netherlands, 24/08/15. https://doi.org/10.1007/978-3-319-24264-4_5

An approximate dynamic programming approach to urban freight distribution with batch arrivals. / van Heeswijk, Wouter ; Mes, Martijn ; Schutten, Marco.

Computational Logistics: 6th International Conference, ICCL 2015, Delft, The Netherlands, September 23-25, 2015, Proceedings. ed. / Francesco Corman; Stefan Voβ; Rudy R. Negenborn. Cham : Springer, 2015. p. 61-75 (Lecture Notes in Computer Science; Vol. 9335).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

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AU - Mes, Martijn

AU - Schutten, Marco

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N2 - We study an extension of the delivery dispatching problem (DDP) with time windows, applied on LTL orders arriving at an urban consolidation center. Order properties (e.g., destination, size, dispatch window) may be highly varying, and directly distributing an incoming order batch may yield high costs. Instead, the hub operator may wait to consolidate with future arrivals. A consolidation policy is required to decide which orders to ship and which orders to hold. We model the dispatching problem as a Markov decision problem. Dynamic Programming (DP) is applied to solve toy-sized instances to optimality. For larger instances, we propose an Approximate Dynamic Programming (ADP) approach. Through numerical experiments, we show that ADP closely approximates the optimal values for small instances, and outperforms two myopic benchmark policies for larger instances. We contribute to literature by (i) formulating a DDP with dispatch windows and (ii) proposing an approach to solve this DDP.

AB - We study an extension of the delivery dispatching problem (DDP) with time windows, applied on LTL orders arriving at an urban consolidation center. Order properties (e.g., destination, size, dispatch window) may be highly varying, and directly distributing an incoming order batch may yield high costs. Instead, the hub operator may wait to consolidate with future arrivals. A consolidation policy is required to decide which orders to ship and which orders to hold. We model the dispatching problem as a Markov decision problem. Dynamic Programming (DP) is applied to solve toy-sized instances to optimality. For larger instances, we propose an Approximate Dynamic Programming (ADP) approach. Through numerical experiments, we show that ADP closely approximates the optimal values for small instances, and outperforms two myopic benchmark policies for larger instances. We contribute to literature by (i) formulating a DDP with dispatch windows and (ii) proposing an approach to solve this DDP.

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KW - Transportation planning

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van Heeswijk W , Mes M , Schutten M. An approximate dynamic programming approach to urban freight distribution with batch arrivals. In Corman F, Voβ S, Negenborn RR, editors, Computational Logistics: 6th International Conference, ICCL 2015, Delft, The Netherlands, September 23-25, 2015, Proceedings. Cham: Springer. 2015. p. 61-75. (Lecture Notes in Computer Science). https://doi.org/10.1007/978-3-319-24264-4_5

An approximate dynamic programming approach to urban freight distribution with batch arrivals

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