This paper develops a simulated annealing heuristic based exact solution approach to solve the green vehicle routing problem (G-VRP) which extends the classical vehicle routing problem by considering a limited driving range of vehicles in conjunction with limited refueling infrastructure. The problem particularly arises for companies and agencies that employ a fleet of alternative energy powered vehicles on transportation systems for urban areas or for goods distribution. Exact algorithm is based on the branch-and-cut algorithm which combines several valid inequalities derived from the literature to improve lower bounds and introduces a heuristic algorithm based on simulated annealing to obtain upper bounds. Solution approach is evaluated in terms of the number of test instances solved to optimality, bound quality and computation time to reach the best solution of the various test problems. Computational results show that 22 of 40 instances with 20 customers can be solved optimally within reasonable computation time. 
The green vehicle routing problem: A heuristic based exact solution approach