A Two-Stage Metaheuristic Algorithm for the Dynamic Vehicle Routing Problem in Industry 4.0 approach

Abstract: Industry 4.0 is a concept that assists companies in developing a modern supply chain (MSC) system when they are faced with a dynamic process. Because Industry 4.0 focuses on mobility and real-time integration, it is a good framework for a dynamic vehicle routing problem (DVRP). This research works on DVRP. The aim of this research is to minimize transportation cost without exceeding the capacity constraint of each vehicle while serving customer demands from a common depot. Meanwhile, new orders arrive at a specific time into the system while the vehicles are executing the delivery of existing orders. This paper presents a two-stage hybrid algorithm for solving the DVRP. In the first stage, construction algorithms are applied to develop the initial route. In the second stage, improvement algorithms are applied. Experimental results were designed for different sizes of problems. Analysis results show the effectiveness of the proposed algorithm.