A branch-and-price method for the Vehicle Routing Problem with Cross-Docking and Time Windows

Abstract

One important factor in supply chain management is to efficiently control the supply chain flows. Due to its importance, many companies are trying to develop efficient methods to increase customer satisfaction and reduce costs. Cross-docking is considered a good method to reduce inventory and improve responsiveness. The Vehicle Routing Problem with Cross-Docking and Time Windows (VRP-CD-TW) consists on designing the minimum-cost set of routes to serve a given set of transportation requests while respecting constraints on vehicles capacity, customer time windows and using transfers on a cross-docking base. Each customer must be visited just once and mixed tours comprising pick-up and delivery stops are not allowed. For a given vehicle, the designed pick-up tour must precede its delivery tour. In this work, we model the VRP-CD-TW assuming that all feasible orders are known in advance. We present a new mixed integer program to model the VRP-CD-TW and reformulate it via Dantzig–Wolfe decomposition to later develop a column generation procedure. The proposed branch-and-price algorithm shows encouraging results on solving some Solomon-based instances.