Vehicle routing optimization for hazmat shipments considering catastrophe avoidance and failed edges

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Vehicle routing optimization for hazmat shipments considering catastrophe avoidance and failed edges

Zhang, Meng / Wang, Nengmin / He, Zhengwen / Jiang, Bin

Highlights • The risk is defined based on the principle of catastrophe avoidance. • A 2-stage decision-making is proposed, two different strategies are discussed. • The solution methods are developed on the basis of ε-constraint method. • Several managerial insights are obtained by the sensitivity analysis.

Abstract This research is a bi-objective vehicle routing optimization for hazmat shipments considering catastrophe avoidance and failed edges. The risk is defined as load dependent incident consequence, and the maximum risk is minimized based on the principle of catastrophe avoidance. A 2-stage decision-making is proposed to deal with the failed edges after incidents, and two different strategies are discussed. In each strategy, a bi-objective vehicle routing model is developed to decide the initial vehicle routing plan in the first decision-making stage, and a path selection model is developed to decide the paths of substitute vehicles in order to complete the unfinished deliveries of incident vehicles in the second decision-making stage. The exact algorithms and approximation algorithms are developed for both strategies. Whereafter, the two strategies are compared by mathematical analysis. Finally, numerical results are reported and the sensitivity analysis provides several managerial insights.