This paper presents integrated models of probabilistic vehicle routing and scheduling model with time windows and dynamic traffic simulation. The probabilistic model incorporates the uncertainty of travel times. After applying the models to test road network, incorporating the uncertainty of travel times using the models not only allows freight carriers to reduce their total costs, but also improves the environment in terms of decreasing CO2 emissions. As well, the paper investigated the effects and profitability of co-operative freight transport systems using a simulation model based on forecast vehicle routing and scheduling model. Results showed cooperative freight transport systems can lead to a substantial reduction in total delivery costs and total travel times within the whole road network.

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