Vehicle routing with stochastic demands: Models & computational methods

Moshe Dror

Research output: Chapter in Book/Report/Conference proceedingChapter

2 Scopus citations


In this paper we provide an overview and modeling details regarding vehiclerouting in situations in which customer demand is revealed only when the vehiclearrives at the customer’s location. Given a fixed capacity vehicle, this settinggives rise to the possibility that the vehicle on arrival does not have sufficientinventory to completely supply a given customer’s demand. Such an occurrenceis called a route failure and it requires additional vehicle trips to fully replenishsuch a customer. Given a set of customers, the objective is to design vehicleroutes and response policies which minimize the expected delivery cost by afleet of fixed capacity vehicles. We survey the different problem statements andformulations. In addition, we describe a number of the algorithmic developmentsfor constructing routing solutions. Primarily we focus on stochastic programmingmodels with different recourse options. We also present a Markov decisionapproach for this problem and conclude with a challenging conjecture regardingfinite sums of random variables.

Original languageEnglish (US)
Title of host publicationInternational Series in Operations Research and Management Science
PublisherSpringer New York LLC
Number of pages25
StatePublished - 2016

Publication series

NameInternational Series in Operations Research and Management Science
ISSN (Print)0884-8289

ASJC Scopus subject areas

  • Software
  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Applied Mathematics


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