Alternative formulations and improved bounds for the multi-depot fleet size and mix vehicle routing problem

In this paper, we compare different formulations of the multi-depot fleet size and mix vehicle routing problem (MDFSMVRP). This problem extends the multi-depot vehicle routing problem and the fleet size and mix vehicle routing problem, two logistics problems that have been extensively studied for many decades. This difficult vehicle routing problem combines complex assignment and routing decisions under the objective of minimizing fixed vehicle costs and variable routing costs. We first propose five distinct formulations to model the MDFSMVRP. We introduce a three-index formulation with an explicit vehicle index and a two-index formulation in which only vehicle types are identified. Other formulations are obtained by defining aggregated and disaggregated loading variables. The last formulation makes use of capacity-indexed variables. For each formulation, we summarize known and propose new valid inequalities, including symmetry breaking, lexicographic ordering, routing, and rounded capacity cuts. We then implement branch-and-cut and branch-and-bound algorithms for these formulations, and we fed them into a general purpose solver. We compare the bounds provided by the formulations on a commonly used set of instances in the MDFSMVRP literature, containing up to nine depots and 360 customers, and on newly generated instances. Our in-depth analysis of the five formulations shows which formulations tend to perform better on each type of instance. Moreover, our results have considerably improved available lower bounds on all instances and significantly improved quality of upper bounds that can be obtained by means of currently available methods.