Modeling Distribution Problems with Time Windows. Part II: Two Customer Types

Published Online:https://doi.org/10.1287/trsc.21.3.180

This paper extends the results of a previous study concerning distribution with time windows. It is recognized that customers who do not need to be allocated to a time window should receive different service than the rest. Three strategies were studied to accomplish that: stratified service, discriminating service, and staggered and discriminating service. Of these, the last strategy yields the lowest local distribution distance per customer, a distance which can be less than half that for the strategy explained in the previous paper (joint service). Stratified service, however, can yield a lower line-haul distance per customer than staggered and discriminating service. In a specific case, a numerical comparison between stratified service and staggered and discriminating service should determine the overall best choice. This choice notwithstanding, the best strategy involves overlapping vehicle tours. The conventional wisdom of dividing customers into non-overlapping clusters for vehicle routing does not seem attractive for distribution problems with time windows.

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