The value of real-time traffic information in urban freight distribution

ABSTRACT Routes optimization in urban freight distribution is usually an off-line process based on the knowledge of historical conditions on the network. Real-time data provided by Intelligent Transportation Systems (ITSs) enable online re-optimization on the basis of actual traffic conditions.  This paper evaluates the added value generated by re-optimizing the off-line solution with real-time information. The study is carried out for a practical application to the freight distribution of perishable goods in the city of Rome (Italy). The off-line problem is formulated as a vehicle routing problem with soft time windows while in the online problem it is also allowed to skip some customers or to re-sequence the deliveries. Both versions are solved with different algorithms and with different data sets. Results can be used to evaluate the potential return on investment on the acquisition of different kinds of traffic data. At the same time, results can be of interest for information providers, to fix the price of off-line and online information and/or to estimate the associated potential market share.

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