A stochastic dynamic traveling salesman problem with hard time windows

Just-in-time (JIT) trucking service, i.e., arriving at customers within specified time windows, has become the norm for freight carriers in all stages of supply chains. In this paper, a JIT pickup/delivery problem is formulated as a stochastic dynamic traveling salesman problem with time windows (SDTSPTW). At a customer location, the vehicle either picks up goods for or delivers goods from the depot, but does not provide moving service to transfer goods from one location to another. Such routing problems are NP-hard in deterministic settings, and in our context, complicated further by the stochastic, dynamic nature of the problem. This paper develops an efficient heuristic for the SDTSPTW with hard time windows. The heuristic is shown to be useful both in controlled numerical experiments and in applying to a real-life trucking problem.