Operations Research, Systems Engineering and Industrial Engineering Commons^™

A Hierarchical Optimization Approach For Dynamic Pickup And Delivery Problem With Lifo Constraints, Jianhui Du, Zhiqin Zhang, Xu Wang, Hoong Chuin Lau

Research Collection School Of Computing and Information Systems

We consider a dynamic pickup and delivery problem (DPDP) where loading and unloading operations must follow a last in first out (LIFO) sequence. A fleet of vehicles will pick up orders in pickup points and deliver them to destinations. The objective is to minimize the total over-time (that is the amount of time that exceeds the committed delivery time) and total travel distance. Given the dynamics of orders and vehicles, this paper proposes a hierarchical optimization approach based on multiple intuitive yet often-neglected strategies, namely what we term as the urgent strategy, hitchhike strategy and packing-bags strategy. These multiple strategies …