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

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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.
Original languageEnglish
Title of host publicationComputational Logistics
Subtitle of host publication6th International Conference, ICCL 2015, Delft, The Netherlands, September 23-25, 2015, Proceedings
EditorsFrancesco Corman, Stefan Voβ, Rudy R. Negenborn
Place of PublicationCham
PublisherSpringer
Pages61-75
ISBN (Electronic)978-3-319-24264-4
ISBN (Print)978-3-319-24263-7
DOIs
Publication statusPublished - 2015
Event6th International Conference on Computational Logistics, ICCL 2015 - Delft, Netherlands
Duration: 24 Aug 201524 Aug 2015
Conference number: 6

Publication series

NameLecture Notes in Computer Science
PublisherSpringer
Volume9335
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference6th International Conference on Computational Logistics, ICCL 2015
Abbreviated titleICCL
CountryNetherlands
CityDelft
Period24/08/1524/08/15

Keywords

  • Urban distribution
  • Transportation planning
  • Consolidation
  • Approximate dynamic programming

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  • 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). Cham: Springer. https://doi.org/10.1007/978-3-319-24264-4_5