Iterated local search algorithm based on very large-scale neighborhood for prize-collecting vehicle routing problem.

This paper presents a new variant of the vehicle routing problem (VRP), the prize-collecting vehicle routing problem (PCVRP), which is derived from the hot rolling production of the iron and steel industry. One major characteristic of the PCVRP is that the customers need not be visited compulsorily but a prize can be collected from each customer when visited. Besides the capacity constraint, a task completion constraint is introduced and requires that the total demand of the visited customers should be no less than a predetermined amount. The main objective is a linear combination of three objectives: minimization of total distance traveled, minimization of vehicles used, and maximization of prizes collected. An iterated local search algorithm (ILS) based on very large-scale neighborhood (VLSN) using cyclic transfer is proposed for the PCVRP. Computational results of problem instances with up to 100 customers show the algorithm is efficient and effective. [ABSTRACT FROM AUTHOR]