Technical Note—Worst-Case Benefit of Restocking for the Vehicle Routing Problem with Stochastic Demands

Published Online:https://doi.org/10.1287/opre.2019.1901

The extant literature on the vehicle routing problem with stochastic demands indicates that the restocking strategy yields moderate percentage expected cost reductions relative to the a priori approach but lacks theoretical support for this improvement. We conduct a worst-case analysis that corroborates the observed restocking benefits and enhances our understanding of a foundational model in logistics under uncertainty.

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