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     Journal of Manufacturing Systems 30 (2011) 83–92

    Contents lists available at ScienceDirect

     Journal of Manufacturing Systems

     journal homepage: www.elsevier .com/ locate / jmansys

    Technical paper

    A new mathematical model for a competitive vehicle routing problem with time

    windows solved by simulated annealing

    R. Tavakkoli-Moghaddama, M. Gazanfari b, M. Alinaghian b,∗, A. Salamatbakhshc, N. Norouzic

    a Department of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iranb Department of IndustrialEngineering, Iran University of Science and Technology, Tehran, Iranc Department of Industrial Engineering, Islamic Azad University – Tehran South Branch, Tehran, Iran

    a r t i c l e i n f o

     Article history:Received 8 June 2010

    Received in revised form 8 April 2011

    Accepted 27 April 2011

    Keywords:

    Vehicle routing problem

    Competitive situation

    Transportation

    Simulated annealing

    a b s t r a c t

    This paper presents an extension of a competitive vehicle routing problem with time windows (VRPTW)

    to find short routes with the minimum travel cost and maximum sale by providing good services to

    customers before delivering the products by other rival distributors. In distribution of the products with

    short lifetime that customers need special device for keeping them, reaching time to customers influences

    on the sales amount which the classical VRPs are unable to handle these kinds of assumptions. Hence, a

    new mathematicalmodel is developed for the proposed problem and for solving the problem, a simulated

    annealing (SA) approach is used. Then some small test problems are solved by the SA and the results are

    compared with obtained results from Lingo 8.0. For large-scale problems, the, Solomon’s benchmark

    instances with additional assumption are used. The results show that the proposed SA algorithm can find

    good solutions in reasonable time.

    © 2011 The Society of Manufacturing Engineers. Published by Elsevier Ltd. All rights reserved.

    1. Introduction

    Transportationhas an importantrole in various domains,such as

    enterprise, economic and service systems. By this way, researchers

    are interested in improving the routes, deleting the unnecessary

    travels and creating the replacement short routes. In addition,

    many problems, such as traveling salesman problem (TSP), vehi-

    cle routing problem (VRP) and the like, are developed by this

    approach. VRPs include problems where fleet of vehicles presents

    service from depot to geographically dispersed customers’ set with

    specific demands so that the cost function of transportation is

    minimized. The VRP was formulated mathematically by Dantzig

    and Ramser [1]. Clarke and Wright [2] developed Dantzig and

    Ramser’s approach by using a saving algorithm. Also, a different

    approachbased on the branch-and-bound algorithmwas presented

    by Loporte et al. [3]. Christian et al. [4] solved the capacitatedVRP with stochastic demands by a branch-and-price algorithm.

    Since VRPs are categorized as NP-hard problems [5] that no exact

    algorithm is used to solve them in large sizes due to high computa-

    tional cost; thus approximate and heuristic algorithms are used in

    practice. Thus, many researchers developed heuristics and meta-

    heuristics, such as local search [6], minimum K-trees [7], adaptive

    memory (AM) [8], column generation [9], simulated annealing (SA)

    ∗ Corresponding author.

    E-mail address: [email protected](M. Alinaghian).

    [10–12], genetic algorithms (GAs) [12,13], tabu search (TS) [13,14],

    ant system [15,16]. Tavakkoli-Moghaddamet al. developed a math-ematical model forthe VRPwith backhaulsby a memetic algorithm

    [17]. Furthermore, Tavakkoli-Moghaddam et al. [18] presented a

    linear-integer model of a capacitated VRP with the independent

    route length in order to minimize the heterogeneous fleet cost and

    maximize the capacityutilization.This presented model wassolved

    by a hybrid simulated annealing.

    The vehicle routing problem with time windows (VRPTW) is an

    extension of the VRP where delivery of goods to each customer

    should be occurred in the interval [ai, bi], in which ai   and bi   are

    the earliest and the latest allowable times that the service should

    be taken place. The VRPTW is divided in two parts, namely VRP

    with soft time window (VRPSTW) and VRP with hard time win-

    dow (VRPHTW). The VRPSTW is a relaxation of the VRPHTW, in

    which the delivery of goods is allowed outside the time windows if a penalty is paid. However in the VRPHTW, the deviation from the

    time windows constraint is not allowed at all.

    Early studies of solution methods forthe VRPTW canbe found in

    Golden and Assad [19] and Solomon [20]. Ombuki et al. [21] prop-

    agated a VRPTW by a Pareto approach, weighted sum and genetic

    algorithmin such a waythe total lengthand numberof thevehicles

    were minimized. Geiger [22] developed a VRPTW for minimizing

    the total distance, total deviations from the time window bounds,

    number of violations, and number of vehicles by a Pareto approach

    and genetic algorithm. An exhaustive review of the VRPHTW can

    be found in [23]. Qureshi et al. [24] presented a new column gen-

    0278-6125/$ – see front matter © 2011 The Society of Manufacturing Engineers. Published by Elsevier Ltd. All rights reserved.

    doi:10.1016/j.jmsy.2011.04.005

    http://localhost/var/www/apps/conversion/tmp/scratch_5/dx.doi.org/10.1016/j.jmsy.2011.04.005http://localhost/var/www/apps/conversion/tmp/scratch_5/dx.doi.org/10.1016/j.jmsy.2011.04.005http://www.sciencedirect.com/science/journal/02786125http://www.elsevier.com/locate/jmansysmailto:[email protected]://localhost/var/www/apps/conversion/tmp/scratch_5/dx.doi.org/10.1016/j.jmsy.2011.04.005http://localhost/var/www/apps/conversion/tmp/scratch_5/dx.doi.org/10.1016/j.jmsy.2011.04.005mailto:[email protected]://www.elsevier.com/locate/jmansyshttp://www.sciencedirect.com/science/journal/02786125http://localhost/var/www/apps/conversion/tmp/scratch_5/dx.doi.org/10.1016/j.jmsy.2011.04.005

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    84   R. Tavakkoli-Moghaddam et al./ Journal of Manufacturing Systems 30 (2011) 83–92

    eration based on the exact optimization approach for the VRPSTW.

    Due to the high complexity level of the VRPTW a tabu search algo-

    rithm was proposed by Taillard et al. [25] to solve the VRPSTW.

    The proposed algorithm minimizes the total traveled distance and

    total penalty that must be paid for presenting the service delay

    outside time windows. Furthermore, Tavakkoli-Moghaddam et al.

    [26] proposed a multi-criteria vehicle routing problem with con-

    sidering soft time windows and their problem is solved by SA. In

    addition a comprehensive review of heuristics methods used for

    solving the VRPHTW and the VRPSTW can be found in [27,28]. Due

    to the importance of service times presented by other companies

    in real world, distribution companies design the routes of fleets

    with respect to the condition of other competitors for obtaining

    the maximum sale.

    This paper proposes a new approach for VRPs, in which the cost

    of routes is minimized while the amount of sale is concurrently

    maximized. This approach needs to consider some other parame-

    ters, such as competition between distributors, deciding factors of 

    the customers and service time presented by companies for cus-

    tomers where the classical VRP is unable to achieve good solutions

    for these kinds of assumptions.

    In this paper, a novel variant of vehicle routing problem with

    time windows is presented that occurs in a competitive environ-

    ment.In this situation, itis very importantto attendthe service time

    presented to customers in such a way that if the vehicle presents

    the service to customers later than its rival, it will miss a partial

    of its sale. Demand of each customer is divided of two parts, the

    first part (didi), does not depend on time and should be sent to the

    customer completely, the secondpart (dtdi), is time-dependent and

    it would be lost if the rival’s arrival time is earlier than vehicle’s

    arrival time to the customer. Therefore distributor‘s reaching time

    to the customers influences on the amount of sales.

    Since there are no related papers on a competitive approach on

    theVRP in ourbest knowledge, in this work a new presentedmodel

    forthe VRPwith competitive time windows (VRPCTW) is presented

    that can be considered as a new class of the VRPTW. Despite of  

    similarities between the classical models of VRPTW with proposed

    model there are several differences that are described as follows:

    •   In the classicalmodels,arriving to the customer earlier thanlower

    bound of time windows is not desirable whereas in the new

    model it is desirable.•   In the classical models, arriving to the customer at any time in

    time window bounds has same desirability, but in the proposed

    model, desirability of arriving time from lower bound to upper

    bound of time windows decrease.•   In the new model, arriving to the customer after upper bound

    of time windows makes partial of sale miss, but in the classical

    models total sale is missed or only desirability decrease.

    It is proven that VRPs belong to the category of NP-hard prob-

    lems [5]; thereforethe model is solved by simulatedannealing (SA)

    for large-scale problems. For some small cases, the related results

    of the proposed SA are compared with the results obtained by the

    Lingo8 software using a branch-and-bound algorithm. The related

    results show the appropriate efficiency for solving the problem,

    especially for large sizes.

    The rest of this paper is organized as follows. Section 2 intro-

    duces theproblem andSection 3 represents the model formulation.

    The problem-solving methodology is described in Section 4 and

    the computational results are discussed in Section 5. Finally, the

    conclusion is presented in Section 6.

    2. Problem definition

    In a competitive environment, it is very important to attend the

    service time presentedto customersin such a waythatif thevehicle

    presents the service to customers later than its rival, it will miss a

    partial of its sale. For this reason, distributing companies define the

    route of their vehicles based upon other rival companies’ strategies

    for serving customers. In other words, sometimes in competitive

    situationsconsidering the competition between vehicles is needed.

    The competition in distribution of products with a short life cycle

    is an example, which customers need a special device for keeping

    them. Therefore reaching time of a distributor to customers influ-

    ences on the amount of sales. Hence, a model presented in this

    paper is to find the routing of vehicles in a competitive environ-

    mentsuchthatit can be consideredas a new version of the VRPTW.

    This problem is proposed under a condition that a competition is

    between distributors for obtaining more sales and market shares.

    Before presenting the model, these parameters are introduced

    for clarification of the problem. Let G = (V ,  A) be a graph, where

    V ={v 1, v 1, . . ., v n} is the nodes set and, A = {(v i, v  j): v i, v  j  ∈V } is thearcsset which each arc (v i, v  j) is associated with a non-negativecost

    C ij.

    t li lower bound of rival’s arrival time to node i

    t ui upper bound of rival’s arrival time to node i

    t ri rival’s arrival time to node i

    t di actual distributer’s vehicle arrival time to node i

     f r ( x) probability distribution function of rival’s arrival time to node

    i

    F r ( x) cumulativedistributionfunctionof rival’s arrival timeto node

    i

    dtdi time dependent demand of node i

    dini  time independent demand of node i

    Di maximum number of customer’s demand in node i

    E (Di) Expected coverage of the ith customer’s demand

    Demand of each customer is divided of two parts, the first part

    (dini), does not depend on time and should be sent to the customercompletely, the second part (dtdi), is time-dependent and it would

    be lost if the rival’s arrival time is earlier than vehicle’s arrival time

    to the customer. Eq. (1) shows the relation between components of 

    the demand.

    Di  = dini + dtdi   (1)

    The problem is solved under the following assumptions:

    (1) Each vehicle has a fixed capacity.

    (2) Each customer location is serviced from only one vehicle.

    ( 3) The total demands of customers must not exceed from the

    capacity of the vehicle.

    (4) Each vehicle has to depart the visited customer and return to

    the depot.(5) A vehicle is allowed to deliver goods before the earliest allow-

    able service time windows without missing any sale. Except

    of the rival’s arrival time, all problem parameters (e.g., cus-

    tomers’ demands and travel time) are assumed to be known

    with certainty.

    Arriving after the latest rival’s arrival time, t ui, the first part of  

    demand, Dtdi, will be lost. If the arrival time occurs in the time win-

    dow, the expected value of the obtained sale before rival reduces

    according to the probability distribution function of the rival’s

    arrival time.

    The rival’s service time distribution to customers can be deter-

    mined by the use of stochastic methods. In this problem, the rival’s

    arrival time distribution to customer i is attributed by the uniform

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    Fig. 2. Pseudocode of the proposed SA.

    4.1.1. Simulated annealing implementation

    The parameters of the proposed SA are as follows:

    R number of iterations

    EL epoch length indicating the number of the accepted solutions

    in each temperature to achieve the equilibrium

    T 0 initial temperature

     A rate of the current temperature decrease (i.e., cooling schedule)

     X feasible solutionC ( X ) objective function value for X 

    N counter for the number of the accepted solutions in each tem-

    perature

    IR counter for the number of iterations

    The main steps of the SA algorithm are shown in Fig. 2.

    Fig. 4. Sequence of customersin their routesby vehicles.

    4.2. Representation and decoding method

    This section presents a decoding method for the representation

    of a solution.The solution representation of thegiven problem with

    n customers consists of n dimensional particles. The particles rep-

    resentation consist of n numbers in the bound (0, m + 1− ε]. Theinteger part of each dimension represents the vehicle that serves

    the nodes. Thus, the same integer parts represent the same vehi-

    cle for serving the customers. The fractional part represents the

    sequence of the customer in the route. In other words, it shows pri-

    ority of serving by the vehicle. The decoding method is based on

    the following steps:

    Step (1) For each customer (i.e., customer i where i = 1, . . ., n),repeat Step 2.

    Step (2) Fill all the dimension of representation with numbers

    in the bound (0, m + 1− ε]. The ith dimension represents the ith

    node. Allocate customer i to vehicle k if the integer part of the ith

    dimension of representation is k.

    Step (3) Sort the allocated customers of each vehicle according tothe fractional part of the related dimension of customers.

    Forexample, suppose that 7 nodes and3 vehicles areavailable.A

    simple representation is shown in Fig.3. In this example, customers

    7 and2 areallocatedto vehicle 1.The sequenceof visitingcustomers

    is shown in Fig. 4.

    Fig. 3. Example of a problem representation and decoding.

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    Fig. 5. 2-Opt exchange operation.

    4.3. Initial solution generation

    To generate initial solutions, which is the first step in any meta-

    heuristic approach, a creative approach is applied as follows:

    (1) Sort the customers according to t li none descending.

    (2) Allocate the first customer (i.e., r 1) to the first vehicle (i.e., v 1).

    (3) Allocate the second customer (r 2) to the current vehicle (v 1) if 

    its distance to depot is more than the first customer allocated

    (r 1). It is necessaryto consider thelimitation of thecapacityand

    travel time of the vehicle.

    (4) Repeat the following steps for the reminding customers till allcustomers are serviced by all vehicles.

    (5) Select the sequence of the reminding customers.

    (6) Estimate the new customer’s distance with the last customer

    allocatedof each route anddepotas well. Allocate thecustomer

    to that route where the minimum distance is achieved while

    the capacity of vehicles and the travel time limitations are not

    violated.

    4.4. Local search methods

    After generating initial solutions, one of the following steps is

    repeated for improving the initial solution.

    4.4.1. 2-Opt exchange operator 

    The2-optoperator improves singleroute. It exchangesthe route

    directionbetween twoconsecutivenodes. If thecostfunction of the

    route has been improved, then the modified route is kept; other-

    wise, the route returns to the last condition. The 2-opt exchange

    operation is shown in Fig. 5, in which the edge (i, i + 1) and ( j,

     j +1) are replaced by edge (i,  j) and (i + 1,  j + 1), thus reversing the

    direction of customers between i + 1 and j.

    4.4.2. Insertion method

    Select a route at random, then select as the max [0.1× (length

    of the route), 2] nodes in each route, and change the integer num-

    ber of selected nodes in the bound of [0, m] randomly to change

    the vehicle that services the selected node. In other words, a nodeis departed from one route and it is added to another route using

    insertionheuristics.Anewinsertionisacceptedifthevehiclecapac-

    ity and maximum time, in which vehicle v  can be used, are not

    violated.

    4.5. Parameter setting 

    The performance of any meta-heuristic algorithmis usually sen-

    sitive to the settings of the parameters that influence its search

    behavior. In this section, the parameters for the proposed meta-

    heuristics are explained and introduced experimentally according

    to Table 1. In this table, a is the cooling rate, EL is the number of 

    the accepted solution in each temperature for achieving the equi-

    librium, and T 0 represents the initial temperature.

    To set T 0, an initial solution is first generated and then 20 neigh-

    bors of theinitial solution arefound. Finally, theobjective functions

    of them are calculated.  f min and  f max are set for the minimum

    and maximum changes on the objective function obtained from

    neighbors, respectively. T 0  is set based on Eq. (25):

    f min + 0.1(f max −f min) (25)

    5. Computational results

    Computational results are shown in small and large-scale cases

    for the model verification and the SA results, respectively. For themodel verification, 10 test problems in small sizes are solved by

    the Lingo 8.0 software. The coordination of nodes is generated

    randomly in the uniform distribution [0,100] and the customer’s

    demand is generated randomly in the uniform distribution [0,10].

    The total vehicles capacity is considered as to 1.2 times of the total

    demands of customers. To determine the time windows bound-

    aries, the given problem is solved without considering customers’

    time windows boundaries the maximum travel time of vehicles is

    considered as U . then the value of time windows boundaries are

    calculated in a = Rand (0, U −U /n) and b = a + U /n for each customer

    where a and b are the lower and upper bounds of time windows,

    respectively. Also, allthe solution procedures arecoded in theMAT-

    LAB7 program andall thetest problems are run using the Intel Dual

    Core, 2.5 GHz compiler and 1 GB of RAM.

    The comparison of Lingo with the proposed algorithm shows

    that our proposed algorithm can obtain approximately an optimal

    solution in less time than Lingo as shown in Table 2. The average

    gap between the optimal and the SA solutions is 1.288% showing

    the efficiency of the proposed SA. Furthermore, increasing the size

    of the problem increases the solution time of Lingo exponentially

    whileit does nottangible effecton thesolution time ofthe proposed

    algorithm.

    To evaluate the proposed SA on large-scale problems,it is tested

    on a set of 56 Solomon’s test cases [29]. In these problems and for

    allof thetest problems in theoriginaldata, there are100 customers

    thatare divided intosix setsof R1, R2, C1, C2, RC1 and RC2.In setsof 

    R1 and R2, the customer locations, demands and time windows are

    randomlyand uniformlydistributed; however, theyare clusteredin

    sets C1and C2.SetsRC1 andRC2 display a combinationof uniformlydistributed and their clusters.

    Because of thedifference between thegiven problem (VRPCTW)

    and the classical VRPTW, some assumptions are inserted into the

    Solomon’s test problems for adjusting the standard test problems

    with the given problem. Hence, all of the customers’ demands

    are considered as time dependent demands. Also, in the classical

     Table 1

    SA parameters.

    SA parameter settings

    No. of iterations 100, 200, 500

    a 0.99

    EL   50

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     Table 2

    Results in small-sized problems.

    No. of problems No. of customers nv Lingo 8 SA (200 iterations)

    Best solution Time (s) Best solution Time (s) Gap (%)

    1 8 2 17.71 12 17.71 12.528 0.000

    2 8 2 22.40 12 22.40 13.188 0.000

    3 8 3 15.68 78 15.96 15.081 1.754

    4 10 2 22.26 127 22.26 14.781 0.000

    5 10 3 29.37 320 29.68 15.016 1.082

    6 10 4 21.11 430 21.45 16.494 1.619

    7 12 2 24.78 489 25.32 17.543 2.196

    8 12 2 29.04 542 29.40 15.467 1.237

    9 12 3 28.20 1245 28.85 18.769 2.288

    10 12 4 27.08 2530 27.81 18.653 2.708

    Average 23.763 578.5 24.084 15.752 1.288

     Table 3

    Comparison of theperformanceof theproposed SA algorithmfor a setof C .

    Problem   nv   100 iterations 200 iterations 500 iterations

    Best solution Time (s) Gap (%) Best solution Time (s) Gap (%) Best solution Time (s)

    C101 10 34.83 253.67 3.2 34.01 756.57 0.8 33.74 1373.37

    C102 10 78.14 320.71 58.1 65.35 649.36 32.2 49.41 1066.51

    C103 10 89.65 225.56 76.7 69.13 506.18 36.3 50.73 1292.34C104 10 93.31 291.24 50.0 80.24 626.01 28.9 62.23 1051.22

    C105 10 37.35 214.26 4.8 35.80 534.22 4.8 35.65 1055.68

    C106 10 33.57 225.32 0.1 34.59 628.06 3.1 33.56 1497.61

    C107 10 39.88 213.77 4.1 39.03 544.60 1.9 38.30 1000.58

    C108 10 50.67 228.82 32.6 43.79 476.25 14.6 38.21 938.61

    C109 10 54.47 221.55 47.3 40.40 532.90 9.3 36.97 1127.72

    C201 3 24.49 320.56 1.5 24.31 814.36 0.7 24.14 1786.14

    C202 3 67.23 337.71 39.4 51.76 788.76 7.3 48.22 1688.32

    C203 3 69.19 349.91 59.8 62.89 840.94 45.2 43.31 1909.99

    C204 3 81.02 362.07 55.1 73.20 886.64 40.1 52.25 1817.24

    C205 3 24.90 354.64 2.8 24.46 746.88 1.0 24.23 1785.99

    C206 3 25.69 345.12 3.1 25.08 745.45 0.6 24.92 1766.83

    C207 3 25.48 334.64 4.8 24.97 679.57 2.7 24.31 1761.36

    C208 3 25.58 355.16 5.4 24.34 689.22 0.3 24.27 1760.13

    Average 50.32 291.45 26.4 44.32 673.29 13.3 37.91 1451.74

     Table 4

    Comparison of theperformanceof theproposed SA algorithmfor a setof R.

    Problem nv 100 iterations 200 iterations 500 iterations

    Best solution Time (s) Gap (%) Best solution Time (s) Gap (%) Best solution Time (s)

    R101 19 69.92 51.96 18.7 62.24 90.23 5.7 58.90 349.09

    R102 17 68.57 46.23 24.3 69.05 89.48 25.2 55.17 326.19

    R103 13 119.96 49.48 55.5 104.85 96.13 35.9 77.14 319.03

    R104 10 171.43 62.20 46.1 145.24 120.46 23.8 117.31 356.37

    R105 14 49.61 44.90 7.6 49.34 98.16 7.0 46.11 242.26

    R106 12 98.36 51.33 54.0 97.78 84.84 53.1 63.87 309.63

    R107 10 124.76 59.56 47.3 102.60 109.59 21.2 84.67 283.68

    R108 9 167.07 63.97 59.4 148.21 120.40 41.5 104.78 737.77

    R109 11 48.08 48.54 13.4 45.75 102.37 7.9 42.40 438.31

    R110 10 47.49 54.33 6.4 44.76 107.88 0.3 44.62 514.65

    R111 10 56.88 53.39 40.9 48.88 115.26 21.1 40.37 508.49R112 9 50.31 57.57 22.4 44.64 118.61 8.6 41.10 712.90

    R201 4 46.61 152.85 39.9 37.23 325.59 11.8 33.31 692.93

    R202 3 68.08 351.28 68.2 64.68 784.42 59.8 40.48 1901.95

    R203 2 87.81 389.05 52.7 75.27 888.67 30.9 57.50 1660.74

    R204 3 129.73 1173.53 74.6 99.01 2453.90 33.2 74.32 5522.43

    R205 3 52.17 342.97 56.8 40.65 770.71 22.2 33.27 1899.95

    R206 3 69.86 368.53 66.7 52.06 930.32 24.2 41.90 1691.04

    R207 2 103.13 1193.48 71.9 79.91 2411.69 33.2 60.01 5384.14

    R208 3 134.83 1111.53 69.4 114.32 2510.75 43.6 79.59 5612.23

    R209 3 44.61 358.55 33.0 41.85 741.87 24.8 33.53 1791.94

    R210 3 49.44 365.44 53.6 43.69 730.40 35.8 32.18 1868.25

    R211 2 59.02 1599.35 59.9 49.60 2598.85 34.4 36.92 5515.25

    Average 83.38 350.00 45.3 72.24 713.07 26.3 56.50 1679.97

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     Table 5

    Comparison of the performanceof theproposedSA algorithmfor a setof RC .

    Problem nv 100 iterations 200 iterations 500 iterations

    Best solution Time (s) Gap (%) Best solution Time (s) Gap (%) Best solution Time (s)

    RC101 14 63.24 95.72 10.3 59.94 208.69 4.5 57.34 300.41

    RC102 12 117.86 232.49 28.4 95.43 326.71 4.0 91.77 408.58

    RC103 11 158.38 178.91 35.1 134.88 433.66 15.1 117.21 508.68

    RC104 10 211.79 247.03 44.9 163.53 557.77 11.9 146.11 562.94

    RC105 13 56.76 120.26 11.7 51.30 202.61 0.9 50.82 370.16

    RC106 11 61.31 173.38 15.1 54.35 304.10 2.1 53.25 493.11

    RC107 11 65.28 172.94 23.7 54.83 317.27 3.9 52.78 542.65

    RC108 10 55.75 233.54 12.2 52.40 426.42 5.5 49.69 277.23

    RC201 4 48.14 181.37 35.5 39.99 383.54 12.5 35.54 940.65

    RC202 3 92.68 404.86 57.4 72.52 729.11 23.1 58.89 1867.27

    RC203 3 111.23 382.96 46.8 97.61 747.02 28.9 75.74 1786.43

    RC204 3 135.58 371.83 47.4 116.32 719.33 26.5 91.96 2000.79

    RC205 4 49.93 177.45 55.4 39.78 364.43 23.8 32.12 984.50

    RC206 3 62.84 359.15 81.2 51.67 806.13 49.0 34.68 1623.57

    RC207 3 51.12 357.09 26.1 47.50 748.87 17.2 40.53 1858.59

    RC208 3 54.46 358.92 42.1 43.05 717.19 12.3 38.33 1915.30

    Average 87.27 252.99 35.8 73.44 499.55 15.1 64.17 1027.55

    Fig. 6. Quality vs iteration.

    VRPTW, two considered objectives are to minimize the number of 

    vehicles and the travel distance. However, in our presented prob-

    lem, minimizing the number of the vehicles is not the problem

    objective. Hence, the number of vehicles of the test problems is set

    with the best solution reported in the literature that can be found

    at: http://www.crt.umontreal.ca/cordeau/tabu/.

    The objective function is presented in two terms. The first term

    minimizes the total travel cost and the second one maximizes the

    sale in a rival situation. In each test problem, two objective func-

    tions arechanged into one objective function by weighting to each

    term. The weights of two terms are considered 1 and 5, respec-

    tively.

    To evaluate the quality of the solutions, the relative gap (RG)

    between the best solution (BR) obtained from the proposed SAwith the maximum iterations and the best solution (RA) ofthe pro-

    posed SA within other iterations for each test problem is computed

    by:

    RG =RA− BR

    BR  × 100

    To evaluate the solution quality versus the run time of the

    algorithm, each test problem is solved for R = 1 00, 200 and 500

    iterations.

    Tables 3–5 compare the performance produced by the proposed

    SA in the set of C1, C2, R1, R2, RC1 and RC2 for 100, 200 and

    500 iterations. In this table, nv is the number of the considered

    vehicles.

    Fig. 7. Convergence rate for Problem C108.

    The average gaps of the proposed SA algorithm for three sets

    of problems C , R and RC in 100 iterations are 26.4, 45.3 and 35.8%,

    respectively. In addition, the average gaps of the SA algorithm for

    these sets of problems in 200iterations are 13.3%, 26.3% and 15.1%,

    respectively. In the set of RC , the coverage speed to a good solu-

    tion is faster than other sets. The best results are obtained for 500

    iterations in allthe sets. The relative gap for 500 iterations are zero,

    because the best solutionsobtained within 500 iterations aremuchbetter than the best solutions obtained for 100 and 200 iterations.

    Thus, there is no need to illustrate the “Gap” column for 500 itera-

    tions. The relative gaps for 100 and 200 iterations are computed

    according to the comparisons results with 500 iterations. Fig. 6

    shows the convergence rate of the proposed algorithm in different

    sets. The algorithm run time is acceptable for solving test prob-

    lems and the maximum run time in 100, 200 and 500 iterations

    are 1599.35 and 2598.85 and 5612.23, respectively for Problem

    R211.

    Also, convergence rate for Problem C108 is shown in Fig. 7. The

    percentage of the improved resultfrom 100iterations to 200% iter-

    ationsis 15.7%.Finally,the problem is solvedfor Problem C108 with

    100, 200 and 500 iterations, and a schematic route is also shown in

    Fig. 8.

    http://www.crt.umontreal.ca/cordeau/tabu/http://www.crt.umontreal.ca/cordeau/tabu/

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    R. Tavakkoli-Moghaddam et al./ Journal of Manufacturing Systems 30 (2011) 83–92 91

    Fig. 8. Schematic routesfor Problem C108 with 100, 200and 500 iterations.

    6. Conclusion

    This paper has presented a special type of the vehicle routing

    problem with time windows (VRPTW), in which a competition

    exists between distributors. In distribution of the products with

    short life time that customersneed special devicefor keeping them,

    reaching time to customers influences on the sales amount which

    the classical VRPs are unable to handle these kinds of assumptions.

    In addition, a new mathematical model related to this problem

    has been presented to find the short routes with the minimum

    travel cost of fleet, traveled distancesand maximum sale fora com-

    pany. To verify the solution technique, 10 test problems have been

    solved by the Lingo 8.0 software and the related results obtained

    by the proposed simulated annealing (SA) have been very efficient

    approaching to the optimal solution. For small sizes, the average

    gap between the proposed SA and Lingo solutions has been equal

    to 1.288% showing an acceptable result. The proposed SA has been

    used for solving the presented model for large-scale instances.

    These solutions have shown that the presented model has been

    verified andthe proposed SA has considered as a suitable approach

    to obtain highqualitysolutionswith reasonablycomputational cost

    and time.

     Acknowledgement

    The first author is grateful for the partially financial sup-

    port from the University of Tehran under the research Grant No.

    8106043/1/14.

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