An Exact Method for a First-Mile Ridesharing Problem

Abstract

Motivated by the worldwide development of shared mobility, we investigate a vehicle routing problem with time windows and deadlines called the first-mile ridesharing problem (FMRSP). The FMRSP involves routing a fleet of vehicles, each servicing customers within specific time windows. The FMRSP generalizes the well-known vehicle routing problem with time windows (VRPTW), additionally imposing that each vehicle route arrives at the destination before the earliest deadline associated with the set of customers served by the route. The FMRSP is also related to the VRPTW and release dates, where in addition to time window constraints, a release date is associated with each customer defining the earliest time that the order is available to leave the depot for delivery. For the FMRSP, we present an exact method based on a branch-price-and-cut (BPC) algorithm combining state-of-the-art techniques and an innovative pricing algorithm. The pricing algorithm is based on a bidirectional bucket graph-based labeling algorithm, in which the backward extension of a label is computed in a constant time. Effective dominance rules used to speed up the computation are also described. Extensive computational studies demonstrate that our proposed BPC algorithm can solve optimality-modified Solomon benchmark instances involving up to 100 customers and real-world instances involving up to 290 customers. Funding: This research was supported by the National Natural Science Foundation of China [Grants 71831003, 72171043, 71831006, and 71901180]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/trsc.2022.0139 .