Investigating heuristic and meta-heuristic algorithms for solving pickup and delivery problems

The development of effective decision support tools that can be adopted in the transportation industry is vital in the world we live in today, since it can lead to substantial cost reduction and efficient resource consumption. Solving the Vehicle Routing Problem (VRP) and its related variants is at the heart of scientific research for optimizing logistic planning. One important variant of the VRP is the Pickup and Delivery Problem (PDP). In the PDP, it is generally required to find one or more minimum cost routes to serve a number of customers, where two types of services may be performed at a customer location, a pickup or a delivery. Applications of the PDP are frequently encountered in every day transportation and logistic services, and the problem is likely to assume even greater prominence in the future, due to the increase in e-commerce and Internet shopping. In this research we considered two particular variants of the PDP, the Pickup and Delivery Problem with Time Windows (PDPTW), and the One-commodity Pickup and Delivery Problem (1-PDP). In both problems, the total transportation cost should be minimized, without violating a number of pre-specified problem constraints. In our research, we investigate heuristic and meta-heuristic approaches for solving the selected PDP variants. Unlike previous research in this area, though, we try to focus on handling the difficult problem constraints in a simple and effective way, without complicating the overall solution methodology. Two main aspects of the solution algorithm are directed to achieve this goal, the solution representation and the neighbourhood moves. Based on this perception, we tailored a number of heuristic and meta-heuristic algorithms for solving our problems. Among these algorithms are: Genetic Algorithms, Simulated Annealing, Hill Climbing and Variable Neighbourhood Search. In general, the findings of the research indicate the success of our approach in handling the difficult problem constraints and devising simple and robust solution mechanisms that can be integrated with vehicle routing optimization tools and used in a variety of real world applications.