Simulated Annealing Algorithm for Multi Depot Two-Echelon Capacitated Vehicle Routing Problem

Abstract

Although urban freight transport is a significant contributor to the development of a country, it has adverse effects on the environment and the quality of life in urban areas. To reduce these adverse effects, we can deploy sustainable city logistic strategies. Scheduling and routing of vehicles is a crucial decision in city logistic strategies. Hence, in this paper, we solve the Multi-Depot Two Echelon Capacitated Vehicle Routing Problem (MD2E-CVRP), which is a variant of Vehicle Routing Problem (VRP) with heterogeneous fleets at both levels. Since VRP is NP-hard, we have proposed a Simulated Annealing (SA) based heuristic solution algorithm and have tested it on the standard 2E- CVRP and MD2E-CVRP instances. The results obtained from SA have a good solution quality at just one-fiftieth of computational time using CPLEX and was found to be faster than Adaptive Large Neighborhood Search (ALNS) with only a marginal drop in solution quality.