Ann Melissa Campbell

Routing for Relief Efforts

In the aftermath of a large disaster, the routing of vehicles carrying critical supplies can greatly impact the arrival times to those in need. Because it is critical that the deliveries are both fast and fair to those being served, it is not clear that the classic cost-minimizing routing problems properly reflect the relevant priorities in disaster relief. In this paper, we take the first steps toward developing new methodologies for these problems. We focus specifically on two alternative objective functions for the traveling salesman problem (TSP) and the vehicle routing problem (VRP): one that minimizes the maximum arrival time (minmax) and one that minimizes the average arrival time (minavg). To demonstrate the potential impact of using these new objective functions, we bound the worst-case performance of optimal TSP solutions with respect to these new variants and extend these bounds to include multiple vehicles and vehicle capacity. Similarly, we examine the potential increase in routing costs that results from using these alternate objectives. We present solution approaches for these two variants of the TSP and VRP, which are based on well-known insertion and local search techniques. These are used in a series of computational experiments to help identify the types of instances in which TSP and VRP solutions can be significantly different from optimal minmax and minavg solutions.

A Decomposition Approach for the Inventory-Routing Problem

In this paper, we present a solution approach for the inventory-routing problem. The inventory-routing problem is a variation of the vehicle-routing problem that arises in situations where a vendor has the ability to make decisions about the timing and sizing of deliveries, as well as the routing, with the restriction that customers are not allowed to run out of product. We develop a two-phase approach based on decomposing the set of decisions: A delivery schedule is created first, followed by the construction of a set of delivery routes. The first phase utilizes integer programming, whereas the second phase employs routing and scheduling heuristics. Our focus is on creating a solution methodology appropriate for large-scale real-life instances. Computational experiments demonstrating the effectiveness of our approach are presented.

The Inventory Routing Problem

The role of logistics management is changing. Many companies are realizing that value for a customer can, in part, be created through logistics management (Langley and Holcomb, 1996). Customer value can be created through product availability, timeliness and consistency of delivery, ease of placing orders, and other elements of logistics service. Consequently, logistics service is becoming recognized as an essential element of customer satisfaction in a growing number of product markets today.

Prepositioning supplies in preparation for disasters

In this paper, we examine the decision of where to preposition supplies in preparation for a disaster, such as a hurricane or terrorist attack, and how much to preposition at a location. If supplies are located closer to the disaster, it can allow for faster delivery of supplies after the disaster. As a result of being closer, though, the supplies may be in a risky location if the disaster occurs. Considering these risks, we derive equations for determining the optimal stocking quantity and the total expected costs associated with delivering to a demand point from a supply point. We provide a sensitivity analysis to show how different parameters impact stocking levels and costs. We show how our cost model can be used to select the single best supply point location from a discrete set of choices and how it can be embedded within existing location algorithms to choose multiple supply points. Our computational experiments involve a variety of relationships between distance and risk and show how these can impact location decisions and stocking levels.

Decision Support for Consumer Direct Grocery Initiatives

Many companies with consumer direct service models, especially grocery delivery services, have found that home delivery poses an enormous logistical challenge due to the unpredictability of demand coupled with strict delivery windows and low profit margin products. These systems have proven difficult to manage effectively and could benefit from new technology, particularly to manage the interaction between order capture and order delivery. In this article, we define routing and scheduling problems that incorporate important features of this emerging business model and propose algorithms, based on insertion heuristics, for their solution. In the proposed home delivery problem, the company decides which deliveries to accept or reject as well as the time slot for the accepted deliveries so as to maximize expected profits. Computational experiments reveal the importance of an approach that integrates order capture with order delivery and demonstrates the quality and value of the proposed algorithms.

Probabilistic Traveling Salesman Problem with Deadlines

Time-constrained deliveries are one of the fastest growing segments of the delivery business, and yet there is surprisingly little literature that addresses time constraints in the context of stochastic customer presence. We begin to fill that void by introducing the probabilistic traveling salesman problem with deadlines (PTSPD). The PTSPD is an extension of the well-known probabilistic traveling salesman problem (PTSP) in which, in addition to stochastic presence, customers must also be visited before a known deadline. We present two recourse models and a chance constrained model for the PTSPD. Special cases are discussed for each model, and computational experiments are used to illustrate under what conditions stochastic and deterministic models lead to different solutions.

Incentive Schemes for Attended Home Delivery Services

Many companies with consumer direct service models, especially grocery delivery services, have found that home delivery poses an enormous logistical challenge because of the unpredictability of demand coupled with strict delivery windows and low profit margin products. In this paper, we examine the use of incentives to influence consumer behavior to reduce delivery costs. We propose optimization models for two forms of incentives and demonstrate their value and impact through simulation studies. We conclude with a presentation of insights resulting from our efforts.

Time Slot Management in Attended Home Delivery

Many e-tailers providing attended home delivery, especially e-grocers, offer narrow delivery time slots to ensure satisfactory customer service. The choice of delivery time slots has to balance marketing and operational considerations, which results in a complex planning problem. We study the problem of selecting the set of time slots to offer in each of the zip codes in a service region. The selection needs to facilitate cost-effective delivery routes, but also needs to ensure an acceptable level of service to the customer. We present a fully automated approach that is capable of producing high-quality delivery time slot offerings in a short amount of time. Computational experiments reveal the value of this approach and the impact of the environment on the underlying trade-offs.

The orienteering problem with stochastic travel and service times

In this paper, we introduce a variant of the orienteering problem in which travel and service times are stochastic. If a delivery commitment is made to a customer and is completed by the end of the day, a reward is received, but if a commitment is made and not completed, a penalty is incurred. This problem reflects the challenges of a company who, on a given day, may have more customers than it can serve. In this paper, we discuss special cases of the problem that we can solve exactly and heuristics for general problem instances. We present computational results for a variety of parameter settings and discuss characteristics of the solution structure.

The p-hub center allocation problem

Abstract The p-hub center problem is to locate p hubs and to allocate non-hub nodes to hub nodes such that the maximum travel time (or distance) between any origin–destination pair is minimized. We address the p-hub center allocation problem, a subproblem of the location problem, where hub locations are given. We present complexity results and IP formulations for several versions of the problem. We establish that some special cases are polynomially solvable.