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Recently, a higher competition in logistics business introduces newchallenges to the vehicle routing problem (VRP). Re-route planning, also knownas dynamic VRP, is one of the important challenges. The re-route planning hasto be performed when new customers request for deliveries while the deliveryvehicles, i.e., trucks, are serving other customers. While the re-routeplanning has been studied in the literature, most of the existing works do notconsider different uncertainties. Therefore, in this paper, we propose twosystems, i.e., (i) an offline package pickup and delivery planning withstochastic demands (PDPSD) and (ii) a re-route package pickup and deliveryplanning with stochastic demands (Re-route PDPSD). Accordingly, we formulatethe PDPSD system as a two-stage stochastic optimization. We then extend thePDPSD system to the Re-route PDPSD system with a re-route algorithm.Furthermore, we evaluate performance of the proposed systems by using thedataset from Solomon Benchmark suite and a real data from a Singapore logistics1company. The results show that the PDPSD system can achieve the lower costthan that of the baseline model. In addition, the Re-route PDPSD system canhelp the supplier efficiently and successfully to serve more customers whilethe trucks are already on the road.

Re-route Package Pickup and Delivery Planning with Random Demands