Purpose

This paper aims to address a green, multi-objective open vehicle routing problem for reverse logistics, targeting the joint optimization of total cost, CO2 emissions and customer satisfaction. The corresponding model integrates customer-based consolidation points and dual time windows with flexibility in scenarios where returns are operated by third-party logistics (3PL) providers.

Design/methodology/approach

A mixed-integer linear program is formulated to capture multiple constraints, including vehicle heterogeneity, route duration limits and flexible scheduling needs. Two novel features are introduced: (1) local consolidation points, where selected customers temporarily collect returns from nearby locations, and (2) dual time windows that distinguish between acceptable and preferred service intervals.

Findings

Results demonstrate the model's ability to explore diverse trade-offs among environmental, economic and service-related objectives. The use of consolidation points and flexible time windows enhances route efficiency while improving customer alignment. The multi-objective solution techniques provide decision-makers with a structured method to evaluate competing goals.

Practical implications

The proposed model is well aligned with logistics strategies used in sectors such as e-commerce, retail and consumer goods, where returns are handled through 3PL providers and vehicle return trips are often unnecessary. Its integration of consolidation mechanisms and preference-sensitive scheduling has the potential to improve routing efficiency, reduce emissions and enhance customer satisfaction in dense urban environments.

Originality/value

This study is the first to jointly address cost, emissions and customer satisfaction within an open vehicle routing context while also integrating customer-based consolidation and dual time windows to enhance flexibility and realism in reverse logistics routing.

Planning delivery and collection routes is a critical operational task in logistics and supply chain management (Dutta et al., 2022; Singhtaun and Piyapornthana, 2022). Each day, goods are transported across cities and regions to serve customers, stores, and drop-off points. Effective route planning reduces transportation costs, saves time, and improves service quality and reliability (Dasdemir et al., 2022), while operating under constraints such as limited fleet capacity, fuel costs, service-time preferences, and emission regulations (Heidari et al., 2023). In this context, the Vehicle Routing Problem (VRP), first introduced by Dantzig and Ramser (1959), serves as the classical optimization framework. In its basic form, vehicles depart from a central depot, visit customers, and return to the depot (see also Niu et al., 2022; Peng et al., 2024). Since then, numerous VRP variants have been developed to capture real-world complexities (e.g. Shao et al., 2023; Singhtaun and Piyapornthana, 2022). Comprehensive overviews of these variants are provided by Shao et al. (2023), and Archetti et al. (2025).

An important extension of the classical VRP is the Open Vehicle Routing Problem (OVRP), which has received increasing attention in recent years. In the OVRP, vehicles are not required to return to the depot after completing their routes; instead, each route may terminate at the last customer served (Sánchez-Oro et al., 2020; Soto-Mendoza et al., 2020). This open-route structure is particularly relevant in settings involving third-party logistics (3PL) providers, rental fleets, or contract-based carriers, where eliminating return trips can significantly reduce travel time, fuel consumption, and operating costs (Cao et al., 2025; Ren, 2011). The concept was first introduced informally by Schrage (1981) and later formalized by Sariklis and Powell (2000). Recent modeling advances and applications of the OVRP are discussed by, among others, Xiao et al. (2024) and Zhang et al. (2024).

The OVRP has been widely applied in reverse logistics, where used products are collected from geographically dispersed customers (Sánchez-Oro et al., 2020; Tonbul et al., 2024). In such settings, customer availability is often restricted to specific time windows, making service-time coordination essential. Incorporating time-window constraints yields the Open Vehicle Routing Problem with Time Windows (OVRPTW), which more accurately reflects operational scheduling requirements (Niu et al., 2022). In practice, planners must also account for heterogeneous vehicle capacities and maximum route durations (Ruiz et al., 2019). At the same time, companies seek to minimize costs while responding to increasing environmental pressures and service-quality expectations. These concerns have motivated the development of green vehicle routing models aimed at reducing fuel consumption and greenhouse gas emissions (Dutta et al., 2022; Heidari et al., 2023; Niu et al., 2018a), while maintaining high customer satisfaction, as delays or missed collections can negatively affect service perception (Cota et al., 2022; Sun et al., 2021).

While previous studies have examined trade-offs between cost and either environmental impact or service quality (e.g. Sánchez-Oro et al., 2020; Zheng et al., 2023), to the best of our knowledge, no study has jointly addressed cost, CO2 emissions, and customer satisfaction within the OVRP framework. Some works integrate environmental considerations by embedding fuel consumption or emissions into a single cost-based objective (e.g. Niu et al., 2018b; Zhang and Wang, 2013), while others incorporate service quality through time-window penalties, without modeling customer satisfaction as a separate objective (e.g. Xia and Fu, 2019). Moreover, although consolidation mechanisms (e.g. Atefi et al., 2018; Rostami et al., 2025) and dual time-window structures (e.g. Rahmani, 2021) have been studied in OVRP variants, these features are typically considered in bi-objective or cost-focused settings, without explicitly capturing their interaction with environmental and customer-oriented objectives.

Motivated by these gaps, this study proposes a novel extension of the OVRP that jointly considers cost, CO2 emissions, and customer satisfaction, and incorporates two additional features to better reflect real-world reverse logistics operations:

  1. Local consolidation points: Certain customers may temporarily act as intermediate collection points for nearby returns. Multiple vehicles can deliver to these nodes, after which another vehicle continues the route depending on capacity. This mechanism enables chained open routes, reduces redundant trips, and improves routing efficiency while supporting economic and environmental objectives (Atefi et al., 2018; Rostami et al., 2025).

  2. Dual time windows: The problem distinguishes between operationally acceptable service intervals and preferred customer time slots. The former provides scheduling flexibility, while the latter is treated as a soft constraint capturing customer satisfaction. This structure is particularly relevant in reverse logistics, where coordination with individual customer availability is critical (Rahmani, 2021).

The proposed model, which is formulated as a mixed-integer linear program (MILP), addresses logistical challenges that are increasingly relevant in sectors such as e-commerce, retail, consumer electronics, and drugstore chains (e.g. Amazon, H&M, IKEA, MediaMarkt, Rossmann), which often manage high volumes of returns from geographically dispersed customers. These activities are frequently outsourced to 3PL providers to improve efficiency and competitiveness (Ren et al., 2024). In such settings, vehicles are not necessarily required to return to a central depot, making open routing particularly suitable (Brito et al., 2016; Niu et al., 2018b). In dense urban environments, customer-based consolidation points can further enhance routing efficiency by aggregating returns, while dual time windows support flexible scheduling that accounts for both operational constraints and customer preferences. By jointly considering cost, CO2 emissions, and customer satisfaction, the proposed model offers strong practical potential for modern reverse logistics operations.

The remainder of the paper is organized as follows. Section 2 introduces the problem and notation. Section 3 presents the proposed mathematical model. Detailed linearization of the nonlinear constraints is provided in Supplementary Material 1. Section 4 presents an illustrative case study, and Section 5 concludes the paper.

This study considers a green open vehicle routing problem for reverse logistics in which a geographically distributed set of customers is served by a heterogeneous fleet of non-returning vehicles. Routes start at customer nodes and may terminate at either another customer or the central depot, eliminating mandatory return trips and thereby reducing travel distance, fuel consumption, and emissions. The choice of route termination points directly affects feasibility, load transfers, and cost optimization, distinguishing the proposed formulation from the classical OVRP.

Figure 1 schematically compares the classical OVRP with the proposed variant. In the classical OVRP (left panel), vehicles start at customer nodes and terminate at the depot, whereas the proposed structure (right panel) incorporates customer-based consolidation points and dual time windows.

Figure 1
Two network diagrams compare standard delivery flows with a system where customers act as consolidation points.The two side-by-side network diagrams consist of a legend on the far right. The legend defines three shapes: a single circular node for “Customer”, a rectangle for “Depot”, and a double circle node for “Customer acting as consolidation point”. The first diagram on the left represents a standard distribution network. At the top left, a circular node connects to a circular node at the center, and from that central circular node, a downward arrow points into the rectangular node. At the top right, another circular node has a long arrow that points directly into the rectangular node. To the rectangular node, three separate upward arrows point from various circular nodes. The path on the left flows to the rectangular node from a circular node, and then to this circular node; a final arrow points from a circular node at the bottom. The center path consists of a vertical line of three circular nodes where arrows point upward toward the rectangular node. The path on the right consists of a circular node at the bottom with a long upward arrow that connects to another circular node, pointing into the rectangular node. The second diagram on the right represents a consolidated network. At the top, two circular nodes point to a double circle node, which then has an arrow pointing into the rectangular node. Below the rectangular node, a single upward arrow points from another double circle node in the middle to the rectangular node. This double circle node receives arrows from the circular node from the right, and also receives an upward arrow from a third double circle node at the bottom. The bottom double circle node at the bottom right connects to two adjacent circular nodes via upward arrows. On the left, a separate chain of two circular nodes flows upwards and connects to the double circle node in the middle.

Schematic comparison between the classical OVRP (left) and the proposed problem (right)

Figure 1
Two network diagrams compare standard delivery flows with a system where customers act as consolidation points.The two side-by-side network diagrams consist of a legend on the far right. The legend defines three shapes: a single circular node for “Customer”, a rectangle for “Depot”, and a double circle node for “Customer acting as consolidation point”. The first diagram on the left represents a standard distribution network. At the top left, a circular node connects to a circular node at the center, and from that central circular node, a downward arrow points into the rectangular node. At the top right, another circular node has a long arrow that points directly into the rectangular node. To the rectangular node, three separate upward arrows point from various circular nodes. The path on the left flows to the rectangular node from a circular node, and then to this circular node; a final arrow points from a circular node at the bottom. The center path consists of a vertical line of three circular nodes where arrows point upward toward the rectangular node. The path on the right consists of a circular node at the bottom with a long upward arrow that connects to another circular node, pointing into the rectangular node. The second diagram on the right represents a consolidated network. At the top, two circular nodes point to a double circle node, which then has an arrow pointing into the rectangular node. Below the rectangular node, a single upward arrow points from another double circle node in the middle to the rectangular node. This double circle node receives arrows from the circular node from the right, and also receives an upward arrow from a third double circle node at the bottom. The bottom double circle node at the bottom right connects to two adjacent circular nodes via upward arrows. On the left, a separate chain of two circular nodes flows upwards and connects to the double circle node in the middle.

Schematic comparison between the classical OVRP (left) and the proposed problem (right)

Close modal

The transportation network is modeled as a complete directed graph G=(L,A), where L={0,1,2,...,n} includes the depot (node 0) and customer nodes CN={1,...,n}. The arc set A consists of directed arcs (i,l) with travel durations tilv, distances dil, and costs cilv, which may vary by vehicle type vV. Owing to urban asymmetries such as one-way streets or traffic conditions, the triangle inequality may not hold. Model notation is summarized in Table 1.

Table 1

Model notation and definitions

CategorySymbolDefinition
IndicesvIndex of vehicle type vV={1,2,,k}
i,jIndices of customer nodes i,jCN={1,2,,n}
oIndex of depot node oDN= {0}
lIndex of all nodes (customers and depot) lL={0,1,2,,n}
ParametersslService time at node l for loading or unloading (min)
CvVMaximum allowable load volume (m3) that can be carried by vehicle v
CvWMaximum allowable load weight (kg) that vehicle v can carry
tilvTravel time duration from node i to node l by vehicle v (min)
dilDistance between nodes i and l (km)
qiQuantity of demand at node i (boxes)
cilvTransportation costs for vehicle v traveling from node i to node l ()
λvCO2 emissions per minute during idling or service for vehicle v (kg/min)
αvLoad-dependent fuel consumption coefficient for vehicle v (liter/(km·kg))
ρ0vBase fuel consumption per kilometer for vehicle v (liter/km)
efvCO2 emissions per liter of fuel burned (kg/liter)
dtmaxMaximum allowable delivery duration (min)
wboxWeight of a filled storage box, including packaging and contents (kg)
vboxVolume of a filled storage box (m3)
MA large constant (Big-M) used in the formulation
eisPreferred earliest service start time at node i (soft lower bound)
lisPreferred latest service start time at node i (soft upper bound)
eihEarliest time at which service is allowed to start at node i (hard lower limit)
lihLatest time by which service must start at node i (hard upper limit)
ξvPer-minute bonus (€/min) for vehicle type v drivers waiting before eih
γiThe importance level of customer i, scaled from 1 (low) to 3 (high)
wδieWeight assigned to early service dissatisfaction for customer i
wδilWeight assigned to late service dissatisfaction for customer i
dcvDistance-based transportation cost coefficient (/km) for vehicle v
tcvTime-based transportation cost coefficient (/min) for vehicle v
Decision variablesxilvEqual 1 if a vehicle v travels directly from node i to node l; 0 otherwise
xicpEqual to 1 if node i is selected as a consolidation point; 0 otherwise
atilvArrival time of a vehicle v when traveling from node i to node l
aiService start time at node i, the latest arrival among incoming vehicles
yilvNumber of boxes transported by vehicle v from node i to node l
τijvWaiting time (min) for vehicle v when traveling from node i to node j
liLateness at customer i (min), computed as max(0,ai(lissi))
δilNormalized lateness dissatisfaction of customer i, computed as li/(lihlis)
εijvEarliness at node j when vehicle v arrives early from node i
εimaxMaximum earliness at customer i
δieNormalized earliness dissatisfaction of customer i
Auxiliary variablesriBinary variable for lateness at customer i
bijvBinary variable for earliness at node j
gijvBinary variable for waiting time at node j
kiBinary variable for triggering dissatisfaction calculation for customer i

Note that transportation cost cilv​ for traveling from node i to node l using vehicle v is determined as cilv=dcv.dil+tcv.tilv​, where the first term represents the distance and the second, the time component.

Using the notation above, the main modeling features are incorporated as follows.

Each customer node iCN is characterized by a demand qi, a fixed service time si, and two service intervals that implement the model's dual time window structure:

  1. A soft time window [eis,lis], within which service is preferred.

  2. A hard time window [eih,lih], within which service is permitted.

To capture deviations from preferred service times, both lateness and earliness dissatisfaction are modeled. If service at customer i CN starts after the soft latest time lis​, lateness is defined as li=max(0,ai(lissi)). The corresponding normalized lateness dissatisfaction δil​ is calculated as li/(lihlis)​, scaling lateness by the interval between soft and hard times, lihlis​. This is then weighted by the customer-specific lateness coefficient wδil​, demand qi, and priority weight γi​, emphasizing punctuality for high-priority customers.

Similarly, if service starts before the soft earliest time eis​, an earliness variable εjiv=max(0,M(1xjiv)+eisajivτjiv) is defined for each vehicle v arriving at node i from node j. The maximum earliness at node i, εimax=max(εjiv), is used to compute the normalized earliness dissatisfaction δie=εimax/(eiseih). This is then weighted by the earliness weight wδie​, demand qi, and priority level γi​, capturing the negative impact of early service on customer satisfaction.

In addition to service timing, the model incorporates load transfers between routes. Customer nodes i may serve as temporary consolidation points when they receive two or more incoming routes, as indicated by binary variable xicp​. At these nodes, a vehicle may continue the collection by taking over the aggregated load from preceding routes. This mechanism operates alongside standard vehicle capacity constraints. If the load departing from any node exceeds the volumetric capacity CvV​ or the weight capacity CvW​ ​of the assigned vehicle, a new vehicle with sufficient capacity must continue the route.

The problem is formulated as a MILP that minimizes transportation cost and CO2 emissions while maximizing customer satisfaction, subject to operational and routing constraints. The complete formulation is presented below and explained in detail thereafter.

(1)
(2)
(3)

Subject to

(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)

Objective (1) minimizes the total transportation cost, which comprises three components:

Routing costs: The term cilvxilv​ represents the cost of traveling from node i to node l using vehicle type v.

  1. Service-related bonuses: The term ξvslxilv accounts for the additional payment to drivers of vehicle type v for the service time sl​ at node l.

  2. Idle-time bonuses: The term ξvτijv​ captures compensation for drivers who arrive at customer j before the start of the hard time window and must wait (idle) before beginning service.

Objective (2) minimizes total CO2 emissions through three elements:

  1. Distance- and load-dependent emissions: The term efvdil(ρ0vxilv+αvwboxyilv) models emissions from traveling between nodes i and l using vehicle type v. Here, efv​ is the emission factor, dil is the distance, ρ0v​ is the emission rate of an empty vehicle, and αvwboxyilv captures the load-dependent emissions.

  2. Idle emissions due to early arrival: The term λvτijv represents emissions from vehicles idling while waiting before the start of a customer's hard time window.

  3. Idle emissions during service: The term λvslxilv accounts for emissions during service activities (e.g. loading or unloading) at node l.

Objective (3) maximizes customer satisfaction by minimizing total weighted dissatisfaction across all customer nodes and includes the following key elements:

  1. Normalized dissatisfaction levels: The lateness dissatisfaction δil and earliness dissatisfaction δie capture deviations from the soft time windows for each customer i.

  2. Weighting coefficient: These are scaled by customer-specific weights wδil and wδie​, reflecting the relative importance of avoiding lateness versus earliness. To ensure a normalized outcome in the range [0, 1], the weights are constrained such that wδil+wδie=1.

  3. Aggregation and normalization: The dissatisfaction values are aggregated across customers and normalized by the total weighted demand iCNγiqi, where γi reflects the customer's importance and qi their demand.

This normalization has two purposes:

  1. It constrains the satisfaction level Z3​ within the range [0,1], allowing its interpretation as a satisfaction ratio (from 0% to 100%).

  2. It ensures comparability across instances of different sizes, such as networks with varying numbers of customers or total demand, by expressing satisfaction as a relative rather than absolute performance indicator.

Constraint (4) ensures that customer i is served by at most one vehicle of any type v, meaning that no more than one outgoing arc (il) is allowed from node i.

Constraint (5) designates node j as a consolidation point (xjcp=1) if and only if at least two vehicles arrive at this node (i.e. iCN,ijvVxijv2); otherwise xjcp=0.

Constraint (6) enforces the vehicle's volume capacity limit, ensuring that the total volume of goods vboxyilv transported on any arc (il) does not exceed the volumetric capacity CvV of the assigned vehicle. If the arc is not used (xilv=0), the transported volume must be zero.

Constraint (7) ensures that the load shipped out of node j equals the load shipped into node j plus its own demand qj.

Constraint (8) enforces the weight capacity of each vehicle, ensuring that the total weight of the items wboxyilv transported on a given arc (il) does not exceed the vehicle's weight capacity CvW. If the arc is not used (xilv=0), the transported weight must be zero.

Constraint (9) ensures proper arrival time sequencing by enforcing that the actual service start time aj at customer node j is no earlier than the sum of the vehicle's arrival time atijv and its waiting time τijv. This accounts for situations where vehicles arrive before the customer's time window ejh begins and must wait before starting service.

Constraint (10) links the arrival time atjlv​ at a destination node l to the service start time aj at origin node j plus service time sj and travel time tjlv, activated only if the arc is used xjlv=1.

Constraint (11) ensures timely delivery to the depot node o by requiring that the vehicle arrives at the depot atiov before the latest allowable delivery time dtmax, taking into account the service time so​ required at the depot.

Constraint (12) limits incoming arcs at customer i depending on whether it is designated as a consolidation point (xicp=1) or has positive demand (qi>0).

Constraint (13) defines lateness lj at node j as the positive delay beyond the soft latest start time, computed as max(0,aj(ljssj)).

Constraint (14) models service earliness at customer node iCN. For each incoming arc (j,i) and vehicle type vV, the earliness variable εjiv​ captures how much earlier service begins compared to the soft earliest time eis​, provided that the route is active (xjiv=1). This ensures that earliness is only registered when relevant.

Constraint (15) defines the maximum earliness εimax​ for customer i, by taking the maximum value among all εjiv​ associated with that node. This ensures that customer dissatisfaction reflects the most severe earliness experienced.

Constraint (16) calculates the normalized earliness dissatisfaction δie​ by dividing εimax​ by the range of acceptable early arrival, (eiseih)​. The corresponding value lies between 0 and 1 and is used in the third objective function to quantify the penalty due to early service.

Constraint (17) defines the waiting time τijv before service at node j, ensuring vehicles wait (τijv0) if they arrive before the allowable service start time (atijvejh).

Constraint (18) ensures compliance with hard time windows ljh, by enforcing that the vehicle arrives early enough at customer node j (atijv(ljhsj)) to complete service before the end of the customer's hard time window ljh.

Constraint (19) ensures proper service start time behavior at customer node j when no vehicles enter. If no incoming arc (ij) is selected for any vehicle v, the sum is zero and the constraint enforces ajejs​, so any departure from node j must occur after the soft earliest time​. If at least one vehicle enters node j, the large constant M relaxes the lower bound, and aj is instead determined by other time-sequencing constraints.

Constraint (20) links the service start time aj​ to the vehicle departure decision. If no vehicle departs from node j, then xjlv = 0 for all l and v, which makes the right-hand side of the inequality zero and enforces aj0. Since aj​ is a non-negative variable, this condition fixes aj=0, ensuring that unvisited customers have no assigned service start time. When a vehicle departs from node j, the large constant M relaxes the upper bound, allowing aj to take a feasible value determined by other time-sequencing constraints.

Constraint (21) models normalized lateness dissatisfaction δjl​ as a piecewise-linear function that increases when service begins after the threshold (ljssj). If the service starts on time or earlier (ajljssj), the dissatisfaction is zero (δjl=0).

Constraints (22)–(28) define the decision variables and impose non-negativity and boundedness conditions.

The proposed model contains several nonlinear elements, including conditional constraints, bilinear terms, and max and piecewise-defined operators. To obtain a solvable MILP formulation, these nonlinearities are linearized. The complete linearization of Constraints (5), (10), (12)–(15), (17), (19), and (21) is presented in Supplementary Material 1.

This section presents a case study to demonstrate the practical application of the proposed model. The case study reflects a typical urban operation, where used or returned products are collected from customers (e.g. households or local stores) and transferred through local consolidation points under dual time window constraints. To replicate realistic operating conditions faced by 3PL providers in dense metropolitan areas managing decentralized return flows, the model is applied to synthetically generated data, the details of which are provided below.

The network consists of 25 customer nodes and a central depot. Each node represents a customer from which used or returned products are collected. Four vehicle types (V=1,2,3,4) are considered, each with distinct size, capacity, fuel consumption, and emission characteristics. The transportation cost for each vehicle type v is determined by distance-based and time-based coefficients dcv and tcv, as defined in Section 3. Table 2 summarizes the key specifications of each vehicle type, including transportation cost coefficients dcv and tcv, maximum load weight CvW, maximum load volume CvV, base fuel consumption ρ0v​, load-dependent fuel consumption coefficient αv, idle CO2 emission rates λv, and emission conversion factors efv, and waiting-time bonuses ξv​. The cost coefficients capture the combined effects of fuel usage, driver wages, and operational overheads. Larger vehicles incur higher costs per kilometer and per minute due to greater fuel consumption and increased operating complexity. Waiting-time bonuses, reflecting the economic compensation required for vehicle idle periods, are modeled using a uniform distribution: U(0.50,0.80) /min for smaller vehicles (types 1 and 2) and U(0.80,1.20) /min for larger vehicles (types 3 and 4). Larger vehicles achieve higher load-adjusted fuel efficiency due to their design.

Table 2

Vehicle characteristics and transportation cost coefficients

Vehicle typedcv (/km)tcv (/min)CvW (kg)CvV (m3)ξv​ (/min)λv (kg/min)efv (kg/liter)αv (liter/(km·kg))ρ0v​ (liter/km)
10.50.1251U(0.50, 0.80)253,1300.00030.0218
20.70.210012U(0.50, 0.80)803,1300.00030.0218
310.365057U(0.80, 1.00)2003,1700.0002640.0192
41.40.52000176U(0.80, 1.20)4503,1700.0002640.0192

An unlimited number of vehicles of each type is assumed to be available. This provides operational flexibility, enabling the model to dynamically allocate fleet resources based on demand, vehicle capacity, and routing efficiency.

To illustrate the cost calculation, suppose a Type 3 vehicle travels from node i to node l over a distance of dil=20 kilometers in til3=40 minutes. Using the coefficients in Table 2, the transportation cost is computed by summing the distance component and the time component. The distance cost is calculated as dc3×dil=1.0×20=20, and the time cost is tc3×til=0.3×40=12. Therefore, the total transportation cost for this route segment is 32 . This example demonstrates how the model integrates distance- and time-related expenses to capture realistic operating costs for each route segment.

The remaining model inputs, which define service times, travel characteristics, customer demands, and time window settings, are presented in Table 3. Each customer node i requires a fixed service duration si=4 minutes. Travel times between any two nodes i and l using a vehicle of type v are randomly generated from a uniform distribution U(10,100) minutes as tilv, and the corresponding travel distances dil are scaled proportionally to maintain realistic speed assumptions. Customer demand qi is stochastic, following a uniform distribution U(0,80) boxes, where each box weighs wbox=13.6 kg and occupies vbox=1 m3, directly influencing both vehicle capacity limits and emissions. The maximum permitted delivery duration is set to dtmax=150 minutes, and a large constant M=150 is introduced in Big-M formulations to linearize constraints involving time, vehicle capacity, and routing logic.

Table 3

Model parameters and distributions

ParameterValue/distributionDescription
sl4 (min)Fixed service time per node
tilvU(10,100) (min)Randomly generated travel time
dilProportional to travel timeMaintains realistic average vehicle speed
qiU(0,80) boxesStochastic customer demand
wbox13.6 (kg)Weight of each box
vbox1 (m3)Volume of each box
dtmax150 (min)Maximum allowed delivery time
M150Big-M value
eisU(10,20)Soft time window lower bound
lisU(30,50)Soft time window upper bound
eih0.7*eisHard time window lower bound
lih1.3*lisHard time window upper bound
wδil0.7Weight for lateness penalty
wδie0.3Weight for earliness penalty
γiU(1,3)Customer importance factor

To capture both customer preferences and operational feasibility, the problem assigns dual time windows to each customer. The soft time window [eis,lis] represents the preferred delivery interval, where the lower and upper bounds are generated from uniform distributions U(10,20) and U(30,50) minutes, respectively. The corresponding hard time window [eih,lih] defines the acceptable operational bounds, where eih=0.7eis and lih=1.3lis. Service outside the preferred interval is permitted but results in dissatisfaction penalties. Customer dissatisfaction is evaluated asymmetrically, with a weight of wδil=0.7 for lateness and wδie=0.3 for earliness, reflecting stronger sensitivity to delays. In addition, each customer i is assigned an importance factor γi, randomly drawn from a uniform distribution U(1,3), where 1 indicates low importance and 3 represents high importance. This parameter allows the model to adjust dissatisfaction penalties according to customer priority.

Because the proposed model simultaneously minimizes transportation cost and CO2 emissions while maximizing customer satisfaction, these objectives are inherently conflicting, and no single solution is optimal for all criteria. The analysis therefore focuses on identifying Pareto-optimal solutions, for which no objective can be improved without worsening another. These solutions are generated using the ε-constraint method (Haimes, 1971), where one objective is optimized while the others are imposed as constraints. In our case, this is formulated as: Min Z1​ subject to Z2ε2​ and Z3ε3, where ε2 and ε3​ are the adjustable bounds for the second and third objectives, respectively. By varying these ε-levels, a set of non-dominated solutions is obtained [1].

To generate candidate solutions for the ε-constraint method, each objective function is first optimized individually to identify its best achievable value (anchor point) and the corresponding values of the remaining objectives.

Optimizing transportation cost (Z1) yields a minimum cost of 531.5, with associated CO2 emissions of 226.3 and customer satisfaction of 87.1. When CO2 emissions (Z2) are minimized, the optimal emission level is 218.3, with a transportation cost of 573.4 and customer satisfaction of 93.6. Maximizing customer satisfaction (Z3) results in a satisfaction level of 100, accompanied by a cost of 1281.2 and emissions of 299.2. These anchor values (531.5, 218.3, and 100) define the feasible ranges of the objectives and are used to select appropriate ε-levels for identifying Pareto-optimal solutions.

Transportation cost Z1​ is selected as the primary objective, while the remaining objectives are imposed as ε-constraint: Z2ε2​ and Z3ε3. Based on the extreme solutions, the feasible range of CO2 emissions and customer satisfaction are [218.3, 299.2], and [87.1, 100], respectively. To systematically explore trade-offs, three ε-levels (minimum, midpoint, and maximum) are considered for each objective. Accordingly, ε-levels for CO2 emissions are set to 218.3, 258.7, and 299.2, while those for customer satisfaction are set to 100, 93.6, and 87.1. The resulting (ε2,ε3) combinations and corresponding solutions are summarized in Table 4.

Table 4

Solutions for combinations of ε2 and ε3​​

Solutionε2 (CO2)ε3 (satisfaction)Z1*Z2*Z3*
1218.3100Infeasible
2258.7100760.1258.1100.0
3299.2100834.9292100.0
4218.393.6573.4218.393.6
5258.793.6721.1248.893.6
6299.293.61254298.193.6
7218.387.1573.4218.387.1
8258.787.1766.1256.787.1
9299.287.11,254298.187.1

Solving the model for the nine (ε2,ε3) combinations yields the corresponding objective values. The first combination (ε2=218.3,ε3=100) is infeasible, as no feasible solution satisfies both Z2218.3 and Z3100. The remaining eight combinations produce feasible solutions, each associated with an optimal set of values (Z1*,Z2*,Z3*).

As shown in Table 4, all solutions are distinct, but most are dominated. For example, Solution 8 is dominated by Solution 4, which achieves lower cost and emissions while providing higher customer satisfaction. Only Solutions 2 and 4 are therefore identified as non-dominated solutions. Selecting a preferred compromise among these alternatives depends on managerial preferences and strategic priorities. This choice can be supported by multi-criteria decision-making (MCDM) methods such as the weighted sum method (WSM), TOPSIS, or the analytic hierarchy process (AHP), which enable decision-makers to assign relative importance to objectives and rank the solutions accordingly (see, e.g. Tzeng and Huang, 2011).

To compare the non-dominated solutions obtained from the ε-constraint procedure, we apply WSM to Solutions 2 and 4. Let w1, w2, w3 denote managerial preference weights for cost (Z1​), emissions (Z2​), and customer satisfaction (Z3), respectively, with w1+w2+w3=1. To reflect an emphasis on emission reduction with moderate importance assigned to cost and customer satisfaction, the weights are set to w1=0.3, w2=0.5, and w3=0.2. These weights are used solely for post-solution evaluation. After normalizing the objectives using standard min–max normalization, aggregated scores are computed as S=w1Z˜1+w2Z˜2+w3Z˜3 [2]. The solution with Z1=573.4, Z2=218.3, and Z3=93.6 yields a lower aggregated weighted score (0.2) than the alternative solution with Z1=760.1, Z2=258.1, and Z3=100 (score 0.8), and is therefore selected as the preferred solution.

The optimal values of the decision variables for the selected solution are presented in Table 5. To illustrate, consider route [22–14–0], which consists of two consecutive arcs: Arc 22 and Arc 14. Arc 22 uses vehicle type 1 (C1W=25,C1V=1) to carry 1 box (equal to the demand of node 22) from node 22 to node 14. The vehicle starts service at node 22 at minute 15 from the beginning of the collection process. After spending 4 min at node 22, it departs and travels to node 14, arriving and starting service there at minute 31. Because this is the only incoming arc to node 14, the service start time at node 14 is a15=31.

Table 5

Arcs, load transfers, and timing of the selected solution

ArcVehicle type vOrigin iDestination j/oyijv/ yiovaiatijv/ atiovejhejsljsljhτijvεijvδjeljδjl
1312331194412.618406000080.40
232188153313.319466900000
343011549.674.6
4442455142810.515324800000
5352439173510.515324800070.44
62675103811.216446600000
74701034171
838712112811.216446600000
9491378122911.216385700000
1041001184259
11411107917349.814466900000
1221277154111.216446600010.05
1341301443452
144140683166
153150433882
163162344124112.618406000050.25
174172551112511.216406000000
184180824290
193191344122711.216385700000
203200403157
2142137014407.7113451000100.59
22122141153113.3193349.500020.12
2342301154486
2442401113568
2542501163672

The lateness at customer 14 is as l14=max(0,a14(l14ss14))=max(0,31(334))=2 minutes. The normalized lateness dissatisfaction is then δ14l=2/(49.533)=0.12 (see the 22nd row, last column of the table). Since the vehicle arrives after the hard earliest time limit (e14h=13.3), the waiting time (τ22,14,1)​ is zero. Similarly, the earliness (ε22,14,1) and earliness dissatisfaction (δ14e) are also zero, indicating there is no earliness dissatisfaction.

The outgoing arc (Arc 14) uses vehicle type 4 (C4W=2000,C4V=176) to transfer a total of 68 boxes (1 from node 22 and 67 from node 14) to the depot (node 0). This route is completed in 55 min, which is below the maximum delivery time (dtmax=150). Depot-related time-window variables are not applicable; therefore, the corresponding table cells are indicated with a dash (“–”). All other arcs in Table 5 can be interpreted similarly.

This solution demonstrates the crucial role of consolidation points, specifically nodes 7, 13, 23 and 24, where deliveries from nearby customers are aggregated (see also Figure 2). For example, node 7 receives deliveries from nodes 6, 8, and 12 (Arcs 6, 8, and 12), while node 23 aggregates deliveries from nodes 1 and 16 (Arcs 1 and 16). At each consolidation point, the node's dissatisfaction value is defined as the maximum normalized dissatisfaction among incoming arcs, resulting in values of 0.05 for node 7, 0 for node 13, 0.4 for node 23, and 0.44 for node 24.

Figure 2
A network diagram shows circular nodes and octagonal nodes connected to a central rectangular node by colored arrows.The network diagram consists of a central rectangular node labeled “0” surrounded by circular and octagonal nodes. A legend on the right is titled “Nodes” and identifies circular nodes as “Customer”, octagonal nodes as “Customer acting as consolidation point”, and the rectangular node with “0” as “Depot”. The legend for “Routes” shows a dashed arrow for “No vehicle-type change” and a solid arrow for “At least one vehicle-type change”. The “Vehicle types” legend includes an orange line for “Type 1”, a green line for “Type 2”, a red line for “Type 3”, and a blue line for “Type 4”. The nodes and connections are as follows: At the top left: A dashed black arrow labeled “4” begins from circular node “21” and connects to circular node “3”. From circular node “3”, a dashed black arrow labeled “4” connects to the central rectangular node “0”. To the left: A red solid arrow labeled “3” begins from circular node “5” and connects to octagonal node “24”. A blue solid arrow labeled “4” begins from circular node “4” and connects to octagonal node “24”. From octagonal node “24”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. On the far left: A dashed black arrow labeled “3” begins from circular node “20” and connects to the central rectangular node “0”. At the bottom left: A red solid arrow labeled “3” begins from circular node “1” and connects to octagonal node “23”. A red solid arrow labeled “3” begins from circular node “16” and connects to octagonal node “23”. From octagonal node “23”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. At the top center: A red solid arrow labeled “3” begins from circular node “19” and connects to octagonal node “13”. A blue solid arrow labeled “4” begins from circular node “9” and connects to octagonal node “13”. From the octagonal node “13”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. At the bottom center: A red solid arrow labeled “3” begins from the circular node “15” and connects to the central rectangular node “0”. Below this, a red solid arrow labeled “3” begins from circular node “2” and connects to circular node “18”. From circular node “18”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. To the top right: A red solid arrow labeled “3” begins from circular node “8” and connects to octagonal node “7”. A green solid arrow labeled “2” begins from circular node “12” and connects to octagonal node “7”. A green solid arrow labeled “2” begins from circular node “6” and connects to octagonal node “7”. From the octagonal node “7”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. At the bottom right: A dashed black arrow labeled “4” begins from circular node “11” and connects to circular node “10”. From circular node “10”, a dashed black arrow labeled “4” connects to the central rectangular node “0”. An orange solid arrow labeled “1” begins from circular node “22” and connects to circular node “14”. From circular node “14”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. On the far bottom right, a dashed black arrow labeled “4” begins from circular node “17” and connects to circular node “25”, and from circular node “25”, a dashed black arrow labeled “4” connects to the central rectangular node “0”.

Arc structure with assigned vehicle types and consolidation points

Figure 2
A network diagram shows circular nodes and octagonal nodes connected to a central rectangular node by colored arrows.The network diagram consists of a central rectangular node labeled “0” surrounded by circular and octagonal nodes. A legend on the right is titled “Nodes” and identifies circular nodes as “Customer”, octagonal nodes as “Customer acting as consolidation point”, and the rectangular node with “0” as “Depot”. The legend for “Routes” shows a dashed arrow for “No vehicle-type change” and a solid arrow for “At least one vehicle-type change”. The “Vehicle types” legend includes an orange line for “Type 1”, a green line for “Type 2”, a red line for “Type 3”, and a blue line for “Type 4”. The nodes and connections are as follows: At the top left: A dashed black arrow labeled “4” begins from circular node “21” and connects to circular node “3”. From circular node “3”, a dashed black arrow labeled “4” connects to the central rectangular node “0”. To the left: A red solid arrow labeled “3” begins from circular node “5” and connects to octagonal node “24”. A blue solid arrow labeled “4” begins from circular node “4” and connects to octagonal node “24”. From octagonal node “24”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. On the far left: A dashed black arrow labeled “3” begins from circular node “20” and connects to the central rectangular node “0”. At the bottom left: A red solid arrow labeled “3” begins from circular node “1” and connects to octagonal node “23”. A red solid arrow labeled “3” begins from circular node “16” and connects to octagonal node “23”. From octagonal node “23”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. At the top center: A red solid arrow labeled “3” begins from circular node “19” and connects to octagonal node “13”. A blue solid arrow labeled “4” begins from circular node “9” and connects to octagonal node “13”. From the octagonal node “13”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. At the bottom center: A red solid arrow labeled “3” begins from the circular node “15” and connects to the central rectangular node “0”. Below this, a red solid arrow labeled “3” begins from circular node “2” and connects to circular node “18”. From circular node “18”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. To the top right: A red solid arrow labeled “3” begins from circular node “8” and connects to octagonal node “7”. A green solid arrow labeled “2” begins from circular node “12” and connects to octagonal node “7”. A green solid arrow labeled “2” begins from circular node “6” and connects to octagonal node “7”. From the octagonal node “7”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. At the bottom right: A dashed black arrow labeled “4” begins from circular node “11” and connects to circular node “10”. From circular node “10”, a dashed black arrow labeled “4” connects to the central rectangular node “0”. An orange solid arrow labeled “1” begins from circular node “22” and connects to circular node “14”. From circular node “14”, a blue solid arrow labeled “4” connects to the central rectangular node “0”. On the far bottom right, a dashed black arrow labeled “4” begins from circular node “17” and connects to circular node “25”, and from circular node “25”, a dashed black arrow labeled “4” connects to the central rectangular node “0”.

Arc structure with assigned vehicle types and consolidation points

Close modal

Figure 2 illustrates the routing patterns of the proposed model. Dashed lines represent routes that start at customer nodes and terminate at the depot without vehicle-type changes or consolidation, corresponding to the baseline OVRP. Solid lines denote routes involving at least one vehicle-type change and a load transfer, which may or may not occur at consolidation points. Vehicle types are distinguished by color: orange, green, red, and blue correspond to vehicle types 1–4, respectively.

To benchmark the proposed problem against the conventional OVRP, a baseline model is constructed by restricting two key features of the proposed formulation. First, customer-based consolidation points are disabled, so that no customer is allowed to act as an intermediate load-transfer node. Second, vehicle-type changes along routes are prohibited, ensuring that each route is served by a single vehicle type throughout. Together, these restrictions eliminate load transfers and consolidation, yielding a classical OVRP structure. The baseline model is solved using the same parameter settings as the proposed model to ensure a fair comparison. Using the same WSM weighting scheme, the aggregated weighted score procedure identifies the best solution with a total cost of (Z1=703). Compared with the proposed model's selected solution (Solution 4 in Table 4: Z1=573.4), the OVRP baseline shows a 22.6% increase in total cost. These results highlight the operational advantage of integrating customer-based consolidation points and vehicle-type coordination, leading to a significant reduction in total routing costs.

This research contributes to the OVRP literature by introducing a structured approach for incorporating dual service windows and customer-based consolidation points in an open routing context, and jointly addressing economic, environmental, and service-quality objectives within a single integrated model. From a managerial perspective, these two structural levers, consolidation points and dual time windows, offer complementary strategies for improving reverse logistics efficiency. Consolidation points are particularly advantageous in networks with geographically clustered customers or heterogeneous fleets, where load aggregation and vehicle chaining can substantially reduce distance and emissions. Dual time windows, by contrast, are most beneficial when customer schedules allow temporal flexibility, enabling planners to align satisfaction and operational efficiency. When applied together, these levers allow managers to balance cost, CO2, and service quality effectively.

Several promising avenues for future research emerge from this study. These include incorporating uncertainty through stochastic or fuzzy modeling of key parameters such as travel time, demand, and emissions. While this study focuses on achieving optimal solutions for small-to medium-sized instances, future research could develop efficient heuristic or hybrid metaheuristic algorithms to address larger-scale problems and improve computational scalability. Additional extensions may consider dynamic or real-time routing environments, split deliveries, heterogeneous service levels, and broader environmental metrics such as nitrogen oxide emissions, load-dependent fuel consumption, or carbon trading costs. Expanding the model to multi-depot or collaborative logistics settings would further enhance its relevance for practical urban reverse logistics and support the development of greener and more customer-oriented routing systems.

1.

The optimization models are implemented in Python using the GAMSPy package, which provides a Pythonic interface to GAMS, and solved with CPLEX under default exact optimization settings, ensuring all runs reach proven optimality.

2.

Z˜1=(Z1Z1min)/(Z1maxZ1min),Z˜2=(Z2Z2min)/(Z2maxZ2min),Z˜3=(Z3maxZ3)/(Z3maxZ3min), in which Z˜1,Z˜2,Z˜3 denote the normalized objective values for cost, emissions and customer satisfaction, respectively. Note that customer satisfaction (Z3) is originally a maximization objective and is therefore inverted during normalization so that all criteria are expressed in minimization form when applying WSM.

The supplementary material for this article can be found online.

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