1. A Set-Partitioning-Based Model and Solution Procedure for the SVRP Rosemary Berger, Jeff Linderoth, Clara Novoa and Bob Storer Department of Industrial and Systems Engineering Lehigh University October 21, 2004

2. (Classical) Vehicle Routing Problem Depot distance, travel time or travel cost m identical vehicles

3. (Classical) Vehicle Routing Problem Depot Construct a set of vehicle routes of minimum total cost starting and ending at the depot visiting each customer exactly once satisfying any side constraints (capacity, duration, time windows)

4. Stochastic Vehicle Routing Problem some elements are random  stochastic demands  stochastic travel times  stochastic customers demand revealed when vehicle arrives at customer planned vehicle route “fails” at a customer whenever demand exceeds current vehicle capacity recourse action must be taken at extra cost

5. Previous Work on SVRP Markov Decision Process with Approximate Dynamic Programming  “wait and see” Chance-Constrained Programming  first stage solution for which probability of failure is constrained to be below a certain threshold Stochastic Programming with Recourse  first stage solution that minimizes expected cost of second stage solution