An improved approximation algorithm for the capacitated TSP with pickup and delivery on a tree

In this research, we study the capacitated traveling salesman problem with pickup and delivery (CTSPPD) on a tree, which aims to determine the best route for a vehicle with a finite capacity to transport amounts of a product from pickup points to delivery points on a tree network, such that the vehicle's total travel distance is kept to a minimum. It has several applications in logistics and is known to be NP-hard. We develop a 2-approximation algorithm that is a significant improvement over the best constant approximation ratio of 5 derived from existing CTSPPD literature. Computational results show that the proposed algorithm also achieves good average performance over randomly generated instances. © 2013 Wiley Periodicals, Inc.