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Fourth party logistics routing optimization problem with stochastic transportation time and cost

Huang Min;Ren Liang;Wang Xingwei;College of Information Science and Engineering, Northeastern University, State Key Laboratory of Synthetical Automation for Process Industries, Northeastern University;Evergrande School of Management, Wuhan University of Science and Technology;  
To address the randomness of the transportation time and cost of fourth party logistics(4 PL)under complex and changing environments, the routing optimization for 4 PL with stochastic transportation time and cost is studied. Under the constraint of total transportation cost, an expected value model(EVM) and a chance constrained programming model(CCPM) are established to minimize the total transportation time. Then, to improve the effectiveness and robustness of the proposed models, the CCPM is transformed into an equivalent deterministic model(EDM). According to the characteristic that 4 PL chooses routes and third party logistics providers simultaneously, an ant colony algorithm and an improved ant colony algorithm with replacement strategy are designed to solve the models. Numerical analysis verifies the effectiveness of the improved algorithm, and shows that the EDM can guarantee the robustness of solutions as well as the solution efficiency.
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