DS4DM Coffee Talk
Dynamic Fleet Size and Order Assignment Problem
Natasja Sluijk, Eindhoven University of Technology
July 7, 2022
The dynamic fleet size and order assignment problem (DFSOAP) is a canonical version of a real-world problem faced by a logistic service provider. Each day, the company has to decide on the assignment of newly arrived orders to delivery days, as well as the number of additional vehicles to rent for each day in the planning horizon. When making these decisions, one has to trade-off the increasing rental costs and decreasing demand uncertainty. We formalize the problem and formulate a sequential stochastic optimization model for DFSOAP. We propose four algorithms (policies) that, given a state, return a decision for DFSOAP. Preliminary computation results on a set of instances show the benefit of assigning multiple orders simultaneously, rather than one at a time.
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