Analysis of Vehicle Routing Problem Under Demand Uncertainty Via Simulation
Keywords:
Vehicle Routing Problem (VRP),, Simulation, Uncertainty,, Transportation Cost,, Service LevelAbstract
This paper presents analysis of the vehicle routing problem with demand uncertainty. The objective is to study the effect of demand uncertainty on transportation cost and service level. We developed a simulation model of the vehicle routing problem to simulate the demand uncertainty. Sampling technique was used in the simulation for different types of demand distributions including normal distribution, uniform distribution, and triangular distribution. Computational experiment was conducted with 25 instances from literature by varying the coefficient of variation and interval of demand. The results showed that slightly changes in demand could cause the transportation cost to increase significantly and the service level to decrease. The results of this research are beneficial for supporting the decision making on reducing transportation cost and improving service level.
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