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Section: New Results

Robust/Stochastic programming

Decomposition method for stochastic staff management problems : We addressed an integrated shift scheduling and load assignment optimization problem for attended home delivery, which is a last-mile delivery service requiring the presence of the customer for the delivery. We were mainly interested in generating a daily master plan for each courier. We proposed a tactical problem integrating a shift scheduling problem and a load assignment problem under demand uncertainty, which was modeled as a two-stage stochastic programming model. This model integrates two types of decisions. First-stage decisions are related to the design of a schedule that includes the periods of the day in which each courier must work and the o-d pairs to visit at each time period. Second-stage decisions (recourse actions) consist of the allocation of a number of packages to be delivered at each time period, for each o-d pair, by each courier, such that the demand (number of packages to deliver) for each scenario is satisfied. Recourse is the ability to take corrective actions after a random event has taken place. The objective is to minimize the sum of the daily staffing cost plus the expected daily recourse cost. To solve this problem, we proposed and implemented a multi-cut integer L-shaped algorithm, where the second stage decomposes by time periods and by demand scenarios. To strengthen the first stage model, some valid inequalities are added, and some of the existing constraints are lifted. Results on real-world based instances from a delivery company demonstrate that our approach provides robust tactical solutions that easily accommodate to fluctuations in customer orders, preventing additional costs related to the underutilization of couriers and the use of external couriers to satisfy all delivery requests [37], [43].