A company has to provide service to its customers. A service consists of a visit to the customer plus the spending of some given time at the scene. The future customer demand is not known but the probability distribution for the demand may be known. When a customer call comes in, the company must immediately specify a time window within which the start of service will be provided. The problem is for a fixed service level to determine an “optimal” strategy of route design and time window setting so that the total distance travelled is minimized over the time horizon given. A heuristic method BARTOC (Booking Algorithm for Routing and Timing Of Customers) to solve the problem mentioned above is suggested. BARTOC is based on a cluster-first route-second approach. Some computational results are presented. The results indicate that BARTOC produces high quality solutions.
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