Modern Approaches to The Rich Vehicle Routing Problem
Henry F. R. Fellows
Division of Science and Mathematics
University of Minnesota at Morris
Morris, Minnesota, USA
November 19th, 2016
Computer Science Senior Seminar
###Outline
1. The what and why of routing
2. The rich vehicle routing problem
3. Probability collectives
4. Distributed reverse Vickrey auction
5. Conclusion
What is routing?
“Routing is the process of selecting a path for traffic in a network, or between or across multiple networks.”
The routing of everyday life.
Uber
FedEx
Delta
### Routing by the numbers
**11.7 billion tons of freight**
moved in the US, 2012
**1-2% of EU GDP**
External costs of traffic jams in EU, 2011
**1.5 trillion dollars**
Value of parcel goods moved in US, 2012
Travelling Salesman problem
The problem asks for the shortest route which passes through each point once
In general, the number of possible routes is $\tfrac{1}{2}n!$
For $n=10$: 1,814,400
For $n=15$: 653,837,184,000
That is bad
Traveling Salesman problem
The problem asks for the shortest route which passes through each point once
Routing is an NP-hard problem
“- at least as hard as the hardest problems in NP”
Hard / expensive to find exact solutions quickly
Probably no easy methods of solving them
Good solutions to these problems have real value
The Vehicle Routing Problem (VRP)
Given:
A set of vehicles with a finite capacity
A set of customers with a finite demand
A list of distances between each customer
Find the shortest set of routes that satisfy customer demand
The Rich Vehicle Routing Problem (RVRP)
The RVRP solves more complex routing problems:
Routing things that have to arrive at specfic times
Planning routes where you don't know demand ahead of time
How to choose routes in a competitive environment
Decentralized Vehicle Routing Problem
"How do you route things if every truck plans its own route?"
Less useful in real life currently
More popular as self-driving cars become relevant
Agents
Agents are a loosely defined term. The common features of agents are:
Emulating an individual of a population
Limited access to global state
Decision making authority is given to individuals
Utility
Local utility: how good the state is for the indivdual
Gobal utility: how good the state is for everyone
###Outline
1. The what and why of routing
2. The rich vehicle routing problem
3. **Probability collectives**
4. Distributed reverse Vickrey auction
5. Conclusion
Probability Collectives (PC)
Probability Collectives exploits information theory to find the best set of strategies
A strategy is a solution
Agents share information about their strategies
The cost function is global
PC setup
$N$ agents, each with a set $X$ of strategies
This set is only a sampling of possible strategies
All strategies have an associated probability
Probability of being chosen as answer
Defaults to $\frac{1}{m}$, where $m$ is the length of the set
Probabilities
Our objective is to get a probabilty near $1.0$
PC iteratively updates probabilties
Shannon Entropy
Entropy is an estimate of information content
As the entropy of probabilities of our sets increase, we know more about the usefulness of the strategies within.
Contribution
Compares local utility to global utility
contribution $=$ Local utility of $i_s$ - Global utility
Requires estimates of these values
Combined Strategy set - sample a random strategy from everyone.
Estimate global utility by guessing future
Update probabilities
Update based on contribution of agent and entropy
The contribution becomes more important over time
If the probabilities changed enough: update probabilities again
Reduce size of sampling 'neighborhood'
Reduce influence of entropy in probability
Otherwise, return the strategy with the highest probability
PC Results
Mixed results
Doesn't get caught in mediocre solutions often
'Explores' large amount of problem space
Has potential for improvement
Distributed Reverse Vickrey Auction (drva)
Based off of game theory
Assumes no global cooperation
Hidden cost functions
Vickrey Auction
Sealed bid
Highest bid wins, but pays second highest bid
Encourages bidders to bid true value of item
Reverse Vickrey Auction
Reverse - sellers compete to offer lowest bid
Sealed bid
Lowest bid wins, but is paid second lowest bid
Encourages bidders to provide accurate cost estimate
Distributed Reverse Vickrey Auction
Every round the agents submit bids to customers
Of the customer responses, only the easiest to satisfy is accepted
Rounds continue until every customer assigned
Each agent uses another routing algorithm on their list of customers
DRVA Results
Decently close to best known solutions
Choice of lower level routing algorithm is important
Conclusions
DRVA and PC aren't really comparable in performance
Distributed approaches aren't as good as centralized ones