minimize the total fixed costs and travel costs. Con-
straints (2) ensure that every customer is visited ex-
actly once by exactly one vehicle. Constraints (3)
balance the number of vehicles entering and leaving
a vertex. Constraints (5) - (6) ensure that all vehicle
routes satisfy the capacity constraints. Constraints (7)
- (8) ensure that all vehicle routes satisfy the dura-
tion constraints. Due to the capacity constraints (or
the duration constraints), no subtour would appear in
any vehicle route. Constraints (4) limits the number
of vehicles in use. If constraints (4) are removed, the
model would determine the optimal fleet size for each
vehicle type simultaneously.
Constraints (12) - (14) are introduced as needed.
∑
j∈V\{v
0
}
y
i j
≥
∑
k∈K
∑
j∈V\{v
0
}
∑
e∈E
i j
d
i
x
k
e
,∀i ∈V \{v
0
},
(12)
∑
i∈V \{v
0
}
y
iv
0
=
∑
i∈V \{v
0
}
d
i
, (13)
∑
j∈V\{v
0
}
y
v
0
j
+
∑
j∈V\{v
0
}
w
v
0
j
= 0. (14)
(Yaman, 2006) presented a number of MIP models
for a HVRP. Our model is most similar to the disag-
gregated flow formulation in the sense that the dura-
tion and capacity constraints are handled using vari-
ables associated on the arcs and vehicle types.
(Baldacci et al., 2008) presented a model for a
HVRP where the service duration are not considered
and parallel arcs are not allowed. The model de-
scribed in (Baldacci et al., 2008) corresponds to one
with constraint sets (1) - (5), (10), (11), (15) and (16).
y
i j
≤
∑
e∈E
i j
(Q
k
−d
j
)x
k
e
, ∀i, j ∈V : i 6= j,k ∈K ,
(15)
y
i j
≥
∑
e∈E
i j
d
j
x
k
e
, ∀i, j ∈V : i 6= j, k ∈K .
(16)
Note that Constraints (6) and (12) are aggregated ver-
sions of (15) and (16).
3.3 Literature Review
As compared to VRP, HVRP is less well studied.
Since the work of (Golden et al., 1984), a number
of heuristics and meta-heuristics have been developed
for HVRP. Recent surveys of VRP and HVRP can be
found in (Cordeau et al., 2007) and (Baldacci et al.,
2008) respectively. Studies of VRPs on multigraphs
are scarce. In this section, we give a brief review on a
few construction heuristics.
Insertion heuristics (or insertion-based construc-
tion heuristics) are widely used because they are able
to produce good feasible solutions with a low compu-
tational effort. They serve as a major component of
meta-heuristics, for constructing initial solutions and
generating good vehicle routes. Also, they are useful
for repairing interrupted schedules quickly. An ex-
tensive survey of construction heuristics for VRPs is
presented in (Br
¨
aysy and Gendreau, 2005).
Insertion heuristics generate feasible solutions by
inserting unassigned customers into vehicle routes,
one by one, at a location that minimizes the insertion
cost (changes in objective value), until all customers
are inserted. The sequential version handles one ve-
hicle route at a time whereas the parallel version con-
siders multiple vehicle routes for each insertion. The
effectiveness of insertion heuristics depend on the se-
lection of the next insertion customer and the selec-
tion of the next insertion location.
A classical sequential insertion heuristic begins
with a route that contains a seed customer. The re-
maining unassigned customers are inserted one by
one into the current route at a location with the least
insertion cost. When no unassigned customer can be
inserted into the current route without violating the
capacity constraint or the duration constraint, the pro-
cedure repeats with a new vehicle route. Seed cus-
tomers are selected among the unassigned customers
with the farthest distance from the depot. The proce-
dure stops when all customers are assigned.
Another popular class of sequential insertion
heuristic is known as sweep heuristic. Customers are
inserted one by one following a predetermined or-
der based on the polar angles from the depot to the
customers. (Renaud and Boctor, 2002) developed
a sophisticated version for generating good vehicle
routes. By solving a set-partitioning model, near-
optimal solutions of a HVRP are obtained effectively.
4 STATE OF THE ART
While the mixed integer programming model can
solve small instances effectively, heuristics are pro-
posed for large instances. We contribute a novel inser-
tion heuristic that generates feasible solutions quickly.
Insertion heuristics generate feasible solutions by
inserting unassigned customers into vehicle routes,
one by one, at a location that minimizes the insertion
cost (changes in objective value), until all customers
are inserted. For classical insertion heuristics, inser-
tion costs are determined with fixed vertex orders in
existing vehicle routes. When parallel arcs presence,
there are more flexibility and higher chance of im-
proving a solution through vertex sequencing and arc
selection. Therefore, insertion costs would be poorly
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