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We study a variant of dynamic vehicle routing problem with pickups and deliveries where a vehicle is allocated to each service (i.e., trip) request immediately upon the arrival of the request. Solutions to this problem can be characterized as dynamic policies that define how each customer is handled by operating a fleet of vehicles. Evaluation of such policies is beyond the grasp of analytical studies and requires extensive simulations. We present an efficient and modular simulation tool developed for studying the performance of a large scale system with different policies under given trip arrival process. Numerical and analytical observations on the model are utilized to provide guidelines for solving the routing problem efficiently, and to support the validation of the simulation results. Application of the developed framework is demonstrated by several numerical examples, e.g., policy parameter optimization, which all give insight on the viability of this type of transportation system.

Simulation of a large scale dynamic pickup and delivery problem