The capacitated vehicle routing problem with stochastic demands and time windows

The capacitated vehicle routing problem with stochastic demands and time windows is an extension of the capacitated vehicle routing problem with stochastic demands, in which demands are stochastic and a time window is imposed on each vertex. A vertex failure occurring when the realized demand exceeds the vehicle capacity may trigger a chain reaction of failures on the remaining vertices in the same route, as a result of time windows. This paper models this problem as a stochastic program with recourse, and proposes an adaptive large neighborhood search heuristic for its solution. Modified Solomon benchmark instances are used in the experiments. Computational results clearly show the superiority of the proposed heuristic over an alternative solution approach.