Context-Aware Customizable Routing Solution for Fleet
Management
Jānis Grabis
1
, Žanis Bondars
1
, Jānis Kampars
1
, Ēriks Dobelis
2
and Andrejs Zaharčukovs
2
1
Institute of Information Technology, Riga Technical University, Kalku 1, Riga, Latvia
2
LLC PricewaterhouseCoopers, Kr. Valdemara 21-21, Riga, Latvia
Keywords: Decision Support Systems, Vehicle Routing, Customization, Context-awareness.
Abstract: Vehicle routing solutions delivered to companies as packaged applications combine vehicle routing
decision-making models and supporting services for data integration, presentation and other functionality.
The packaged applications often are tailored to specific needs of their users thought customization methods
and mainly focus on the supporting services rather than on modification of the routing models. This paper
proposes a method for customization of the routing model as a part of the routing application. The
customization method enables companies to incorporate their specific decision-making goals and context
into the routing model without redesigning the model itself. The routing model is also capable of adapting
its behaviour according to observed interdependencies among decision-making goals and routing context.
An illustrative example is provided to demonstrate customization of the routing solution and to highlight
multi-objective and context-dependent characteristics of the vehicle routing problem.
1 INTRODUCTION
Recent developments in information technology
such as services, sensor technologies, advanced data
analytics and cloud computing have allowed to
reconsider solutions of well-known operations
management problems. New data sources can be
incorporated in problem solving and larger
computational resources can be used for searching
solutions. That allows developing models of higher
sophistication providing more realistic solutions. A
vehicle routing (VR) problem is one of such
problems benefiting from the new technological
capabilities (Keming, 2015; Wan et al., 2016).
To make operations managements models
available to users, they are delivered as a part of
various enterprise applications such as decision-
support systems and ERP systems (Madapusi and
D'Souza, 2012; Carton et al., 2016). These enterprise
applications are provided by their vendors and often
require customization to fit needs of particular users.
In the case of the VR problem, the users are
companies providing logistics services. While
customization of enterprise applications is frequently
considered (e.g. Parthasarathy and Sharma, 2016),
traditional methods provide limited guidance for
customization of decision-making components of
these applications and modification of operations
management models used, in particular.
The VR problem also depends on a number of
company specific requirements and circumstances.
The traditional models allocate client requests to
vehicles to minimize traveling costs, and there are
generic formulations of the problem solving model
available (Eksioglu et al., 2009). However, there are
many possible variations. Companies providing
logistics services have different objectives,
deliveries are affected by local circumstances and
there are specific delivery constraints. Developing a
customized solution for every user is resource
intensive for software vendors. One of the possible
solutions is development of operations management
models on the basis of a common reference model
(RM), which consists of generic and customizable
parts. The generic part incorporates the most
common aspects of the VR model shared by many
users, and the customizable part incorporates user
specific aspects of the VR problem.
The objective of the paper is to elaborate a
method for customization of the VR service on the
basis of the RM. The method focuses on
customization of the VR model underlying the
service. It allows to incorporate company specific
638
Grabis, J., Bondars, Ž., Kampars, J., Dobelis, ÄŠ. and Zahar
ˇ
cukovs, A.
Context-Aware Customizable Routing Solution for Fleet Management.
DOI: 10.5220/0006366006380645
In Proceedings of the 19th International Conference on Enterprise Information Systems (ICEIS 2017) - Volume 1, pages 638-645
ISBN: 978-989-758-247-9
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
objectives in the model without structural
modification of the routing model. It also allows to
represent specific operational circumstances faced
by the company. These circumstances are referred as
to context (Abowd, 1999). At this stage of the
research, customization does not address specific
internal constraints because these might require
more comprehensive changes in the model structure
and model solving procedure. Customization is
performed on the basis of the RM, which defines
typical VR objectives and context factors as
described in literature.
The paper describes modules of the customizable
VR service and the customization process. The main
contributions of the paper are a proposal for
separating generic and customizable parts of the VR
model and methods for RM based modification of
this customizable part. The paper is also an initial
step towards a method for developing customizable
operations management applications not only in VR.
It relates to research by Giaglis et al. (2004) and
Cordoso et al. (2016) in its emphasis on addressing
of the routing problem as a part of the overall
information system.
The rest of the paper is organized as follows.
Section 2 provides an overview of the routing
solution. The customization process is described in
Section 3. This section also elaborates key features
of the process including the RM, routing model and
adaption. The vehicles routing results obtained using
the proposed solution are provided in Section 4.
Section 5 concludes.
2 SOLUTION OVERVIEW
The solution is developed for the vehicles routing
problem. A company operates fleet of vehicles and
provides transportation services for its clients. Given
a set of client requests, the routing problem finds a
set of routes starting and ending at a depot that
serves all clients. Typically, there are specific time
windows when the service should be provided.
Requirements are established according to
literature review, evaluation of similar solutions and
interviews with companies.
2.1 Requirements
The VR solution should satisfy all traditional
requirements such as defined in Solomon (1987) and
Laporte (1992). There are several specific
requirements identified in literature and practice that
are not fully satisfied by existing VR solutions.
R1. Multi-objective decision-making – typical
objectives of VR are minimization of costs, time
and travelling distance (Jozefowiez et al., 2008).
Environmental issues, safety concerns and other
factors are often mentioned as relevant.
R2. Customer service requirements should be met -
time windows is a typical way to define
customer service requirements.
R3. Customer priorities should be considered - if
customer requirements cannot be fully satisfied
due to capacity constraints priority should be
given to the most important customers.
R4. Robust and risk aversion is preferable - some of
potential routes exhibit large variations in
travelling time and companies often prefer
routes, which are longer on average but their
traversal time is more predictable.
R5. System level special events should be accounted
for - travel time strongly depends on special
events such as street closures and public
holidays. The system should provide predictive
capabilities to estimate impact of such events.
R6. Route specific exceptional events should be
considered - during the route execution,
exceptional events (e.g., traffic accidents) occur
and the impact of these events on the route
planning should be evaluated.
R7. Location specific requirements should be taken
into account - routing is affected by different
factors depending on location (Cattaruzza et al.,
2014). Additionally, data sources characterizing
routing situations also vary across locations.
R8. Routes should be updated during their execution
in response to customer requests, exceptional
events and other circumstances (Haghani and
Jung, 2005; Ghannadpour et al., 2013).
R9. The solution ramp-up time should to short and
modifications could be introduced in an
expedite manner (Prindezis et al., 2003).
2.2 Key Modules
A complete VR solution consists of routing service,
context platform and transportation management
application (Figure 1). The routing service is the
focal part of this investigation and it is responsible
for generating routes for every vehicle in the
company’s fleet to serve client requests in the given
situation. The transportation management
application provides a wide range of functions to
logistics and transportation companies (Speranza,
2016). It provides input data to the routing service
and consumes routing results. From the routing
perspective, its main function is route execution (i.e.,
Context-Aware Customizable Routing Solution for Fleet Management
639
assignment of client requests to drivers, tracking of
deliveries, performance evaluation). The context
platform is responsible for gathering and pre-
processing of context data from different external
sources. The context data characterize particular
route planning and execution circumstances.
Functionality of the VR service and
transportation management application overlaps
depending on needs of the particular company. If a
company does not possess route execution
functionality then that is provided as modules of the
VR service.
The core part of the routing service is the route
calculation module. It implements route an
optimization model and finds a solution of the VR
problem. The service is packaged as a web service,
which acts as a wrapper for invoking a specific
model solver. This way different model solving
procedures can be used if necessary. The service
also includes additional functions such as model’s
adaptation functions according to the performance
evaluation feedback (see Section 3.4).
The routing model is a mathematical
programming model specified. The model consists
of its generic part and customizable part (see Section
3.3). The generic part is the traditional VR model
while the customizable part represents company’s
specific requirements. The customizable part is
configured according to the VR business model,
which defines unique requirements of the company.
The business model consists of goal and context
models. The goal model specifies company’s VR
and fleet management objectives. It enables meeting
requirement R1 concerning capturing multi-
objective nature of the VR problem. The context
model describes various factors affecting route
planning and execution. It enables meeting
requirements R5 and R6. The business model is
derived from the routing RM. The RM captures the
common VR knowledge and allows sharing the
model development effort among multiple service
consumers. The customer specific model is
developed by extracting relevant features from the
RM or adding unique goals and context factors.
The data integration model is responsible for
supplying the route calculation module with all
necessary input data. It gathers data from sources,
transforms these data and passes them to the route
calculation module. The main input data are: 1)
client demand data provided by the transportation
management application; 2) context data provided
by the context calculation module; 3) performance
evaluation data provided by the transportation
management application. These input data are pre-
processed, aggregated and transformed by the
module.
The context calculation module specifically deals
with processing of context data because context data
providers change dynamically and provide data of
different quality and granularity. The context
platform receives data directly from various sensors.
These data are fed to the context calculation module,
which transform, for instance, raw traffic intensity
data into traffic intensity categories such as light,
medium or heavy traffic. This transformation allows
to decouple volatile data providers from business
interpretation of context data. The context
calculation module is configured according to data
from the context model.
Currently, the prototype of the VR solution uses
OPL to define the routing model and CPLEX to
solve the routing model. The goal and context
Figure 1: Key modules of the vehicle routing solutions.
ICEIS 2017 - 19th International Conference on Enterprise Information Systems
640
models are formally specified in the XMI format.
Data from the XMI file are extracted to add
necessary elements to the routing model.
3 CUSTOMIZATION
The key requirement is an ability to customize the
solution for a particular company and the
customization should be done in a cost-efficient
manner. The proposed approach addresses the
customization issue during the solution design as
well as during the solution execution.
3.1 Process
The customization process defines activities
performed to develop a company specific VR
solution. This solution is created on the basis of the
common reference goal and context model and
generic route optimization model. The final result is
a complete routing solution. The customization
process focuses on tailoring the routing model while
development/integration of the transportation
management application is performed using an
engineering process traditionally used by the service
provide and service consumer.
The first activity of the process is development
of the business model consisting of the goal and
context model (Figure 2). The consumer specific
model is derived from the RM. The RM is
maintained by the service provider and contains all
relevant VR goals and context factors affecting the
route planning and execution. It is a result of
knowledge accumulated from providing routing
services to multiple customers. The business model
is used to create a company specific route
optimization model, which is again derived from the
generic routing model. The generic routing model is
augmented by including goals and context factors
important for a particular company as specified in
the business model.
The data integration model is configured by
establishing data bindings. That includes
specification of context data sources, which could be
specific for every company, and integration with the
transportation management system. The route
optimization model includes multiple parameters
steering the route planning and execution activity.
Initial values of these parameters are set for initial
runs of the routing model. The customized model is
tested and deployed as a part of the routing solution
for productive usage.
The route planning and execution activity
includes tasks on generating routes, tracking route
execution, measuring performance and providing
feedback. This activity is executed continuously
whereas routing performance is monitored. If
performance objectives are not met then the routing
solution should be updated. The model parameters
are changed in an adaptive manner (see Section 3.4),
and these changes can be made without redeploying
the solution in run-time. If adaptation is insufficient
to improve routing performance, changes in the
route optimization model or business model might
be required. A typical change in the route
optimization model is introduction of additional
constraints. A typical change in the business model
is updating of the relevant routing objectives or
context factors. These changes require re-testing and
re-deployment of the routing solution.
The main benefits provided by the proposed
customization process are availability of routing
knowledge, reduction of customization effort and the
feedback loop.
3.2 Reference Model
The RM is maintained by routing service provider
and it contains the most common routing goals used
by different logistics companies and frequently
observed context factors affecting routing activities.
The RM is developed according to scientific
literature and professional experiences while
detailed discussion of the RM is beyond scope of
this paper and it is not attended that this RM is
accepted across the industry (i.e., its scope may be
Figure 2: Customization process.
Context-Aware Customizable Routing Solution for Fleet Management
641
restricted to a single routing service provider). The
RM is developed using the goal and context
modelling methods used in the CDD methodology
(Bērziša et al., 2015).
Figure 3 shows a fragment of the goal model
(elements in the model will be used in Section 4).
This model names relevant routing goals and there
could be relationships among the goals. From the
routing model customization perspective, it is
important that the goal model also contains KPI for
measuring the goals. These KPI can be incorporated
in the optimization model to account for specific
decision-making needs for a particular routing
service client.
Figure 3: A fragment of the goal model.
A fragment of the context model is given in
Figure 4. The model names context elements
affecting routing. In the CDD methodology, a
context element represents already processed raw
context information, which is provided by
measurable properties. The measurable properties
are actual observations gathered from sensors while
the context element already represent domain
specific interpretation of the context measurements
(e.g., measureable property counts cars while
context interpretation defines what does account for
a traffic jam). Measurements are transformed into
context elements using context calculations. This
kind of context processing allows using customer
specific data sources by changing data bindings for
measurable properties without affecting definition of
the context elements.
Figure 4: A fragment of the context model.
3.3 Routing Model
The routing model is a mathematical programming
model (Table 1). The generic model is a typical
formulation of the VR model (e.g. Solomon 1987). It
optimizes routing cost and its main decision-making
variable is a binary variable indicating whether a
vehicle travels from one client to another. This
decision variable is denoted by X. The main
constraints are that each client is visited exactly
once, vehicles have finite capacity, customer service
time windows, routes start and finish at a depot, if
vehicle arrives at a client it also must leave and
departure, transit and arrival time dependences.
The vector c represents expense of taking a
particular path between two clients. This expense
can be expressed in different ways, e.g., actual travel
costs, travel distance or travel time. In the generic
formulation this expense equals to d, which
represents travel distance. Vectors a and b are
parameters used to specify constraints.
The generic model is augmented by a
customizable part. That includes customization of
the objective function by adding a term v’P, where P
is a vector of penalties for not meeting company’s
specific goals and v is a vector of weights indicating
a relative importance of each goal. A corresponding
set of constraints (Eq. 4) is also added to the model.
These constraints represent relationships among
target values of KPI and values estimated by the
model. kpi
T
are target values set by decision-makers
and KPI
C
is a KPI value estimated using the routing
model. This estimated value depends on the decision
variable X. The constraint implies that if the target
KPI value is not achieved then a positive penalty is
added to the objective function. The penalty term in
the objective function and the KPI constraint are
added according to the goals and their measurements
specified in the goal model.
Table 1: Generic and customizable parts of the routing
model.
Additionally, constraint Eq. 3 is also modified.
The cost of the route is now calculated as a sum of
the distance and the weighted impact of context
factors (the weight vector w). This modification
ICEIS 2017 - 19th International Conference on Enterprise Information Systems
642
implies that the cost parameters characterize
different aspects of the route. For instance, there is a
short route where accidents frequently occur; the
aggregated cost parameter captures these
characteristics. The aggregated cost parameter is
defined as c
ijk
implying that there are k different
routes leading from i to j. These different routes are
obtained by finding the best path from i to j using
different sets of w. For instance, one set of w
favours the shortest path while another set of w
favours the safest path.
Changing the goal and context models in the
business model automatically changes the routing
model thus enabling customization of the solution
according to specific requirements. That is
performed in a similar manner as described in
(Chandra and Grabis, 2009).
The routing model depends on a number of
weighting parameters. The initial values of these
parameters are specified in a judgmental manner.
Subsequently, they are continuously updated to
improve routing performance. The adaption is
performed periodically once information about route
execution is accumulated in the transportation
planning application. Adaptation is also one of the
mechanisms used to customize the solution.
4 ROUTING EXAMPLE
The customization approach is explored using an
example. The objectives of the experimental studies
are: 1) to demonstrate impact of company specific
goals on the routing results; 2) to illustrate context-
dependency of the routing results; and 3) to outline
adaptive behaviour of the routing model.
The routing solution is set-up for a logistics
services provider. The provider receives client
requests on the daily bases and must visit these
clients during specified time windows. This provider
has identified that its primary KPI are KPI1)
customer service measured as a percentage of the
clients served during the specified time windows;
KPI2) travel cost calculated as time spent on
deliveries times hourly rate; KPI3) vehicle operating
cost incurred for every vehicle used on a given day
regardless of distance travelled; and KPI4) safety
aimed at avoiding traversal of accident prone routes
measured by an index characterizing frequency of
the accidents. The provider also indicates that two
major context elements affecting its operations are:
CTX1) route variability measured as variation of
driving time from day to day; and CTX2) route
safety measured as a number of accidents observed
for the given route. These goals and context factors
are shown in the business model (see Figure 3 and
Figure 4, respectively). There are hypothesis that the
CTX1 affects KPI1 and CTX2 affects KPI4.
The route optimization model is customized
according to the business model. As the result, a
constraint
11
KPI1
CT
Pkpi is added to the model
to represent KPI1. The corresponding constraints are
added for other KPI as well. Similarly, the expense
calculation is update and now the cost is expressed
as a weighted sum of distance and two context
factors, namely, CTX1 and CTX2
12 3
12
ijk k ij k ij k ij
c w d w CTX w CTX
 ,
where subscripts ij denote distance or context values
or the path between i and j and subscript k denotes
type of the path.
Routing is performed for 20 client requests
received for a single day. The travel distance and
time data are retrieved from OpenStreetMap
(https://www.openstreetmap.org). The accident data
are gathered from a web mapping service. For every
pair of customers, three different paths are obtained
by varying the context dependency weights (Table
2). The path type is referred as Short because the
best route between two customers is found giving
the most importance to the distance minimization.
The path type is referred as Safe because the largest
weight is given to the context factors including the
safety context element CTX2.
Table 2: The weights used to find the best path between
two customers.
Path type w
1
w
2
w
3
Short 0.8 0.1 0.1
Safe 0.1 0.1 0.8
Balanced 0.34 0.33 0.33
The optimization is performed by allowing to select
any of the paths (EXP1), only the shortest path
(EXP2), only the safe path (EXP3) and only the
balanced path (EXP4). The values of KPI obtained
for these four experiments are reported in Table 3.
These values are reported relative to EXP1 or the
optimal case but Z, which is the actual objective
value observed and is a weighted sum of all criteria.
It can be observed that EXP2 yields the best result in
term of actual costs but neglects the impact of
context factors (high value of the cost) and delivers
weak customer service performance. Similarly,
EXP3 selects safe paths and scores the best
according to the safety KPI4. Selecting balanced
path (EPX4) expectedly yields results close to the
Context-Aware Customizable Routing Solution for Fleet Management
643
optimal. None of the experiments yields satisfactory
customer service performance (KPI1). The actual
values recorded were 65 to 75% while the KPI target
was 100%.
Table 3: Values of KPI
Expe-
riment
Z Cost KPI1 KPI2 KPI3 KPI4
EXP1 0.28 1.00 1.00 1.00 1.00 1.00
EXP2 0.40 1.76 1.00 0.75 0.50 0.95
EXP3 0.72 3.41 1.00 1.85 1.50 0.38
EXP4 0.30 1.10 1.07 1.08 1.00 0.97
Figure 5 illustrates differences between routing
results in EXP1 and EXP2. It can be observed that
different paths are selected on several occasions.
EXP2 favours path length over other characteristics.
As a result, the whole route can be performed by a
single driver. In the EXP1 other paths are taken to
choose routes with better safety and variability
characteristics. That indicates context-dependency in
path selection.
As mentioned before KPI1 did not yield
satisfactory performance (other KPI target values
were satisfied). Therefore, weights v are changed
adaptively, to find a better balance among the goals.
Initially the weight for c’X in Eq. 1 was set to v
0
=0.4
and v
3
=0.2
for KPI1(remaining 0.4 are equally split
among other KPI). The weight of KPI1 is gradually
increase by 0.1 and the weights for other KPI1 are
decreased accordingly (EXP1a has v
3
=0.2 and
EXP1b has v
3
=0.4). The adaption results are
reported in Table 4. One can observe that initially
the adaptation improves customer service though the
result is not improved in the next step when KPI1
and KPI4 values worsen. Therefore, the adaption
should be reversed and the importance of KPI4
should be increased.
Table 4: Impact of the weights adaptation on KPI.
Expe-
riment
Z Cost KPI1 KPI2 KPI3 KPI4
EXP1 0.28 1.00 1.00 1.00 1.00 1.00
EXP1a 0.33 1.01 1.07 1.02 1.00 1.01
EXP1b 0.37 0.99 1.07 1.02 1.00 0.56
5 CONCLUSION
The paper developed a method for customization of
VR solutions. The customization is done in a model
driven manner making easier to involve company’s
representatives in the customization process. The
model driven customization of the VR model is
made possible by distinguishing generic and
customizable parts of the mathematical model.
Additionally, customization is achieved by
considering case specific data sources for measuring
context and adaptation of the model’s parameters
during its execution.
The proposed model depends on availability of
contextual data. Some of these data can be
accumulated during route execution while other can
be obtained from external sources. Sharing of data
among users of the VR service would be beneficial.
The model is computationally hard and model
solving time could be reduced by possibly
employing non-parametric optimization techniques.
Currently, the business model defines goals and
context. Business rules could be added to the
business model and these could be used to specify
constraints in the routing model. However,
Figure 5: Routing results for EXP1 (left panel) and EPX2 (right panel). Notable differences are marked with red dots.
ICEIS 2017 - 19th International Conference on Enterprise Information Systems
644
translation of business rules into the constraints
would impose specific requirements towards
specification of rules hard to fulfil in practice (i.e.,
requiring a mathematical modelling expert
participation in business model development).
Detailed numerical analysis of relationships
among context and routing goals and efficiency of
the adaptation procedure is beyond scope of this
paper and is subject of further research.
ACKNOWLEDGEMENTS
This research has received funding from the research
project "Competence Centre of Information and
Communication Technologies" of EU Structural
funds, contract No. 1.2.1.1/16/A/007 signed
between IT Competence Centre and Central Finance
and Contracting Agency, Research No. 1.6 “Support
for multi-criteria enterprise vehicle routing”.
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