Cost Optimization

The VRP solver provides comprehensive cost modeling to optimize your routing operations based on real business constraints. This guide covers various cost types, urgency handling, and optimization strategies.

Cost Types Overview

The solver considers multiple cost components when optimizing routes:

Total Cost = Fixed Costs + Variable Costs + Penalty Costs

Fixed Costs: Activation costs for using resources
Variable Costs: Time-based costs (hourly rates, overtime)
Penalty Costs: Violations of soft constraints

Resource Cost Configuration

Hourly Costs

Configure time-based costs for resources:

{
  "resources": [
    {
      "name": "employee-driver",
      "hourlyCost": 25,  // $25/hour
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    },
    {
      "name": "contractor-driver",
      "hourlyCost": 45,  // $45/hour
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    }
  ],
  "jobs": [
    {
      "name": "delivery-1",
      "duration": 1800
    }
  ]
}

Hourly costs apply to the entire shift duration, not just driving time. Consider using activation costs if you only want to charge for actual usage.

Activation Costs

Fixed costs incurred when a resource is used:

{
  "resources": [
    {
      "name": "rental-truck",
      "activationCost": 150,  // $150 fixed cost if used
      "hourlyCost": 0,      // No hourly charge
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    },
    {
      "name": "owned-vehicle",
      "activationCost": 50,   // $50 daily operating cost
      "hourlyCost": 15,      // $15/hour driver cost
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    }
  ],
  "jobs": [
    {
      "name": "job-1",
      "duration": 1800
    }
  ]
}

Cost Calculation Examples

{
  "name": "full-time-driver",
  "hourlyCost": 30,
  "activationCost": 0
}

8-hour shift cost: 8 ×

30 =

240 Used or not: Same cost (salaried)

Travel Cost Optimization

Travel Time Weights

Control the importance of minimizing travel time:

{
  "options": {
    "weights": {
      "travelTimeWeight": 1.0,  // Standard weight
      "travelDistanceWeight": 0  // Ignored by default
    }
  }
}

travelTimeWeight

number

default:"1.0"

Multiplier for travel time in the objective function. Higher values prioritize shorter travel times.

travelDistanceWeight

number

default:"0"

Multiplier for travel distance. Set > 0 to optimize for distance instead of time.

Balancing Travel vs Other Objectives

{
  "weights": {
    "travelTimeWeight": 10.0,
    "waitTimeWeight": 1.0,
    "urgencyWeight": 1.0
  }
}

Urgency-Based Optimization

Basic Urgency Scoring

Prioritize time-sensitive jobs:

{
  "jobs": [
    {
      "name": "critical-repair",
      "urgency": 100,  // Highest priority
      "location": {"latitude": 52.520, "longitude": 13.405},
      "duration": 3600
    },
    {
      "name": "routine-maintenance",
      "urgency": 10,   // Lower priority
      "location": {"latitude": 52.520, "longitude": 13.405},
      "duration": 1800
    }
  ],
  "resources": [
    {
      "name": "technician-1",
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    }
  ],
  "weights": {
    "urgencyWeight": 50  // Strong urgency preference
  }
}

urgency

integer

default:"0"

Priority score from 0-100. Higher values are scheduled earlier.

Urgency Calculation Formula

Urgency Impact = urgency × urgencyWeight × time_until_scheduledThis creates increasing pressure to schedule urgent jobs sooner.

ASAP Scheduling

Schedule jobs as soon as possible across multiple days:

{
  "jobs": [
    {
      "name": "flexible-task-1",
      "dayIndex": 0,  // Available from day 1
      "windows": [
        {"from": "2024-03-15T08:00:00Z", "to": "2024-03-15T17:00:00Z"},
        {"from": "2024-03-16T08:00:00Z", "to": "2024-03-16T17:00:00Z"},
        {"from": "2024-03-17T08:00:00Z", "to": "2024-03-17T17:00:00Z"}
      ]
    },
    {
      "name": "flexible-task-2",
      "dayIndex": 1,  // Available from day 2
      "windows": [
        {"from": "2024-03-16T08:00:00Z", "to": "2024-03-16T17:00:00Z"},
        {"from": "2024-03-17T08:00:00Z", "to": "2024-03-17T17:00:00Z"}
      ]
    }
  ],
  "resources": [
    {
      "name": "driver-1",
      "shifts": [
        {
          "from": "2024-03-15T08:00:00Z",
          "to": "2024-03-15T17:00:00Z"
        },
        {
          "from": "2024-03-16T08:00:00Z",
          "to": "2024-03-16T17:00:00Z"
        },
        {
          "from": "2024-03-17T08:00:00Z",
          "to": "2024-03-17T17:00:00Z"
        }
      ]
    }
  ],
  "weights": {
    "asapWeight": 100  // Strong ASAP preference
  }
}

DayIndex Strategy

Set dayIndex

dayIndex: 0 = available immediately dayIndex: 1 = available from day 2 dayIndex: 2 = available from day 3

Configure Weight

Higher asapWeight = stronger preference for early scheduling

Combine with Urgency

{
  "urgency": 80,
  "dayIndex": 0
}

Optimization Strategies

Strategy 1: Cost Minimization

Focus on reducing operational costs:

{
  "resources": [
    {
      "name": "efficient-vehicle",
      "hourlyCost": 20,
      "activationCost": 100,
      "capacity": [1000],
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    },
    {
      "name": "large-vehicle",
      "hourlyCost": 35,
      "activationCost": 150,
      "capacity": [2000],
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    }
  ],
  "jobs": [
    {
      "name": "delivery-1",
      "load": [800]
    }
  ],
  "weights": {
    "travelTimeWeight": 0.5,  // Less important
    "activationWeight": 2.0   // Minimize vehicle use
  }
}

Strategy 2: Service Level Optimization

Prioritize customer satisfaction:

{
  "resources": [
    {
      "name": "technician-1",
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    }
  ],
  "jobs": [
    {
      "name": "service-1",
      "urgency": 90,
      "duration": 3600
    }
  ],
  "weights": {
    "urgencyWeight": 100,        // Honor priorities
    "windowWeight": 50,          // Meet time preferences
    "waitTimeWeight": 20,        // Minimize customer waiting
    "preferredResourceWeight": 30 // Use preferred technicians
  }
}

Strategy 3: Balanced Optimization

{
  "resources": [
    {
      "name": "driver-1",
      "shifts": [{
        "from": "2024-03-15T08:00:00Z",
        "to": "2024-03-15T17:00:00Z"
      }]
    }
  ],
  "jobs": [
    {
      "name": "job-1",
      "duration": 1800
    }
  ],
  "weights": {
    // Cost factors
    "travelTimeWeight": 1.0,
    "activationWeight": 1.0,
    "overtimeWeight": 50,
    
    // Service factors
    "urgencyWeight": 10,
    "windowWeight": 10,
    
    // Fairness factors
    "fairWorkloadPerResource": 5,
    "fairWorkloadPerTrip": 5
  }
}

Cost Analysis in Results

The solution provides detailed cost breakdowns:

{
  "solution": {
    "routes": [...],
    "summary": {
      "totalCost": 1250.50,
      "costBreakdown": {
        "fixedCosts": 300,      // Activation costs
        "variableCosts": 850.50, // Hourly costs
        "penaltyCosts": 100     // Constraint violations
      },
      "resourceCosts": {
        "driver-1": {
          "activationCost": 100,
          "hourlyCost": 240,
          "overtimeCost": 30,
          "totalCost": 370
        },
        "driver-2": {
          "activationCost": 100,
          "hourlyCost": 200,
          "overtimeCost": 0,
          "totalCost": 300
        }
      }
    }
  }
}

Understanding Cost Components

Fixed Costs

Variable Costs

Penalty Costs

Advanced Cost Scenarios

Peak Hour Pricing

Different costs for different times:

{
  "resources": [
    {
      "name": "peak-driver",
      "shifts": [
        {
          "from": "2024-03-15T06:00:00Z",
          "to": "2024-03-15T10:00:00Z",
          "hourlyCost": 35  // Morning peak rate
        },
        {
          "from": "2024-03-15T10:00:00Z",
          "to": "2024-03-15T15:00:00Z",
          "hourlyCost": 25  // Standard rate
        },
        {
          "from": "2024-03-15T15:00:00Z",
          "to": "2024-03-15T19:00:00Z",
          "hourlyCost": 35  // Evening peak rate
        }
      ]
    }
  ],
  "jobs": [
    {
      "name": "delivery-1", 
      "duration": 1800
    }
  ]
}

Multi-Objective Optimization

Balance competing objectives:

{
  "options": {
    "objectives": [
      {
        "name": "minimize_cost",
        "weights": {
          "travelTimeWeight": 1.0,
          "activationWeight": 2.0
        }
      },
      {
        "name": "maximize_service",
        "weights": {
          "urgencyWeight": 100,
          "windowWeight": 50
        }
      }
    ],
    "objectiveBalance": 0.6  // 60% cost, 40% service
  }
}

Performance Tips

Cost Calculation Performance:

Complex cost models increase computation time
Many soft constraints require more iterations
Large weight differences can cause instability

Recommendations:

Keep weights in reasonable ratios (1:100 max)
Use hard constraints where possible
Profile different weight combinations

Best Practices

Start with Defaults

Begin with default weights and adjust based on results

Measure Impact

Track these metrics:

Total operational cost
Cost per delivery/service
Resource utilization rates
Customer satisfaction scores

Iterate and Refine

Adjust weights based on business priorities
Monitor unintended consequences
Document weight configurations

Consider Trade-offs

Lower costs vs better service
Fewer vehicles vs more overtime
Urgency vs efficiency

Troubleshooting

Unexpected High Costs

Poor Route Quality

Urgency Not Respected

Resource Management

Configure resource costs and constraints

Time Windows

Balance costs with time constraints

Workload Balancing

Fair distribution vs cost optimization

Scoring System

How costs affect solution scoring

Platform

VRP API

Cost Optimization

Cost Optimization

Cost Types Overview

Resource Cost Configuration

Hourly Costs

Activation Costs

Cost Calculation Examples

Travel Cost Optimization

Travel Time Weights

Balancing Travel vs Other Objectives

Urgency-Based Optimization

Basic Urgency Scoring

Urgency Calculation Formula

ASAP Scheduling

DayIndex Strategy

Optimization Strategies

Strategy 1: Cost Minimization

Strategy 2: Service Level Optimization

Strategy 3: Balanced Optimization

Cost Analysis in Results

Understanding Cost Components

Advanced Cost Scenarios

Peak Hour Pricing

Multi-Objective Optimization

Performance Tips

Best Practices

Troubleshooting

Resource Management

Time Windows

Workload Balancing

Scoring System

Platform

VRP API

​Cost Optimization

​Cost Types Overview

​Resource Cost Configuration

​Hourly Costs

​Activation Costs

​Cost Calculation Examples

​Travel Cost Optimization

​Travel Time Weights

​Balancing Travel vs Other Objectives

​Urgency-Based Optimization

​Basic Urgency Scoring

​Urgency Calculation Formula

​ASAP Scheduling

​DayIndex Strategy

​Optimization Strategies

​Strategy 1: Cost Minimization

​Strategy 2: Service Level Optimization

​Strategy 3: Balanced Optimization

​Cost Analysis in Results

​Understanding Cost Components

​Advanced Cost Scenarios

​Peak Hour Pricing

​Multi-Objective Optimization

​Performance Tips

​Best Practices

​Troubleshooting

​Related Features

Resource Management

Time Windows

Workload Balancing

Scoring System

Cost Optimization

Cost Types Overview

Resource Cost Configuration

Hourly Costs

Activation Costs

Cost Calculation Examples

Travel Cost Optimization

Travel Time Weights

Balancing Travel vs Other Objectives

Urgency-Based Optimization

Basic Urgency Scoring

Urgency Calculation Formula

ASAP Scheduling

DayIndex Strategy

Optimization Strategies

Strategy 1: Cost Minimization

Strategy 2: Service Level Optimization

Strategy 3: Balanced Optimization

Cost Analysis in Results

Understanding Cost Components

Advanced Cost Scenarios

Peak Hour Pricing

Multi-Objective Optimization

Performance Tips

Best Practices

Troubleshooting

Related Features