A capacitated vehicle routing problem with order available time in e-commerce industry

In this article, a variant of the well-known capacitated vehicle routing problem (CVRP) called the capacitated vehicle routing problem with order available time (CVRPOAT) is considered, which is observed in the operations of the current e-commerce industry. In this problem, the orders are not available for delivery at the beginning of the planning period. CVRPOAT takes all the assumptions of CVRP, except the order available time, which is determined by the precedent order picking and packing stage in the warehouse of the online grocer. The objective is to minimize the sum of vehicle completion times. An efficient tabu search algorithm is presented to tackle the problem. Moreover, a Lagrangian relaxation algorithm is developed to obtain the lower bounds of reasonably sized problems. Based on the test instances derived from benchmark data, the proposed tabu search algorithm is compared with a published related genetic algorithm, as well as the derived lower bounds. Also, the tabu search algorithm is compared with the current operation strategy of the online grocer. Computational results indicate that the gap between the lower bounds and the results of the tabu search algorithm is small and the tabu search algorithm is superior to the genetic algorithm. Moreover, the CVRPOAT formulation together with the tabu search algorithm performs much better than the current operation strategy of the online grocer.