A Matheuristic Approach for Delivery Planning and Dynamic Vehicle Routing in Logistics 4.0

In distribution logistics, the planning of vehicles' routes and vehicles' loads are traditionally managed separately, despite these activities are correlated. This often leads to various re-designs to make the routes and load plans compatible and applicable in practice. Moreover, the planned routes, which are static by definition, cannot always cope with unexpected events. Traffic congestion, vehicle failures, adverse meteorological conditions, and further undesired events can make the planned routes inapplicable and require vehicles' re-routing. This results in lower service levels, undesired delays, and higher costs for logistics companies. With the aim of overcoming the above limitations, this work proposes a novel approach based on a matheuristic algorithm that jointly solves the problem of delivery planning and dynamic vehicle routing to automate the delivery process in a logistics 4.0 perspective. The presented algorithm includes two different phases: the static phase, which is executed offline and in advance with respect to the delivery day, and the dynamic phase, which is executed in real-time to cope with unexpected events during the delivery. For the first phase, a matheuristic approach is defined to efficiently solve the combined vehicle routing and loading problems. Differently, for the second phase, a genetic algorithm is proposed to re-route vehicles in real-time, considering both the redefinition in real-time of the nominal trip and/or of the sequence of the customers to be visited. The algorithm is tested both on a literature benchmark and on a real dataset provided by an Italian logistics company. The obtained results show that, on the one hand, the proposed algorithm can automatically provide feasible solutions that minimise travel costs, total travelled distance, and empty space on the vehicles; on the other hand, it can ensure in real-time effective re-routing solutions in case of unexpected events occurring during delivery. Note to Practitioners-This work is motivated by the need for facilitating the operations of planning and routing deliveries in the external logistics sector. We propose an algorithm that automatically generates feasible routing and loading plans for a set of Transport Units (TUs) (i.e., the static phase), and then updates in real-time the nominal route in case of unexpected events (i.e., the dynamic phase). More specifically, the first phase of the algorithm takes as input the set of different clients, the list of products packed into bins (i.e., standard packing units) to be delivered to each client, and the set of transport units available for the deliveries, and provides as output the number and type of TUs to be used, the composition of the bins in each transport unit, and the corresponding route, while optimising the space occupation in each TU and the travel costs. The second phase, instead, takes as input the nominal routes computed in the first phase and, in case of unexpected events (e.g., accidents, slowdowns, etc.) affecting one or more routes, it re-routes the involved trucks guaranteeing the maximum efficiency in regards to travel cost, travel time, and quality of service. The adoption of this algorithm by logistic companies supports the automation of the delivery process and drastically improves the efficiency of logistic operations, with particular regard to the number of used TUs, costs, safety of goods, and customers' satisfaction.