A Real-time Vehicle Routing System for RFID-
tagged Goods Transportation
Feng Li
School of Business Administration
South China University of Technology
Guangzhou, China
fenglee@scut.edu.cn
Abstract-This paper proposes an intelligent vehicle routing
system on real-time in-transit goods status information and real-
time traffic flow information of road network. The system
collects and extracts real-time information of in-transit goods by
attached active RFID tags. Real-time traffic flow information of
observed roads and the vehicle location information are fed back
by the driver of cargo. Moreover, traffic flow status of un-
observed roads is extracted from historical data as empirical
stochastic distributions. Therefore, the optimization of vehicle
route is calculated by a simulation-based optimization algorithm.
In the algorithm, a computational model is built to represent the
complicated vehicle routing problem, instead of traditional
mathematical model. In this way, each uncertain traffic flow
status of unobserved roads in the problem is simulated by a
random variable generator in the computational model. The
intelligent algorithm optimizes the vehicle route according to
simulation outputs. Additionally, the proposed system is built on
multi-agent platform under client/server software architecture.
The distributed computing capability of multi-agent technology
promises the approach has better operating performances.
Finally, a prototype system is implemented to verify our proposal
on the simulation platform.
Keywords- vehicle routing system; real-time information;
RFID; multi-agent system; simulation based optimization
I. INTRODUCTION
Practices with RFID technology have often been observed
in recent years. Providing automatic identification without
manual intervention in wireless environment, RFID offers
cheaper, faster, and more accurate access of information, and is
especially important to the supply chain management.
RFID is of high interest to industries that deal with
perishable goods, such as food, chemicals, and pharmaceutical
products [1,2]. RFID tags can be used to track the goods
through the supply chain and gather data that can reveal how
long it take products to move from one station to another.
Integrated with sensors, active RFID tags can capture the
environmental information of the goods, such as temperature or
humidity, variation of which may increase the spoilage
significantly. Noticing the importance of the environments to
the in-transit goods, Reference [3] proposes an integrated
transportation information system for tracking and tracing and
implements using multi-agent technology.
The work described in this paper was substantiallysupported by the
Philosophy and Social Science Foundation of Guangzhou City, China
(08B12).
978-1-4244-2013-1/08/$25.00 ©2008 IEEE
Ying Wei
Center for Operations Research and Econometrics
Universite Catholique de Louvain
Louvain-la-Neuve, Beligium
ying. wei@uclouvain.be
In this paper, we study an optimal vehicle routing problem
based on the real-time environment information of the
perishable goods and the road traffic flow information. The
former information is obtained by the continuous monitoring of
the RFID tags located in the refrigerated cargo, and the latter
information is observed by the cargo driver. In particular, we
consider a stochastic shortest path problem on a road network
with links having non-stationary travel times. Based on a multi-
agent framework, we propose a real-time vehicle routing
system for implementation. Different from a general
transportation information system, our system provides optimal
path selection based on the dynamic environment information
and real-time road traffic flow information, with the objective
to minimize the total transportation cost and the spoilage loss.
It is worthy to mention that the spoilage loss function is
dependent on the environment and the time left to the deadline.
Optimal vehicle routing with real-time road information is a
non-stationary stochastic process and is challenging to obtain
mathematical solutions [14]. Combining with the real-time
RFID tag information of in-transit goods, it becomes more
challenging for decision-making. It is also not an easy task for
implementation. In particular, we need to solve the following:
• How to collect and transfer real-time RFID data of in-
transit goods and environment information to the data
center. Once emergency occurs or environments
change rapidly, the center should be notified
immediately and quickly responds to the cargo at the
client side.
• How to make optimal decision based on the dynamic
environment information. As mentioned, spoilage loss
is dependent on the environments and the life of
perishable goods. Once the status of in-transit goods is
changed, intelligent vehicle routing system needs to re-
optimize based on the dynamic loss function.
• How to make optimal routing selection according to
the real-time traffic flow information. The optimal
route is changing for varying real-time traffic flow of
the road network. Considering the dynamic loss
function, it is thus very challenging to find the optimal
routing.
In this paper, we study the problem by simulation approach.
To further implement the algorithm in an efficient way, we
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build the intelligent vehicle routing system using clientlserver
(CIS) software architecture. The CIS structure allows
optimization and decision-making by high-performance
computing resources on the server side, and the data collection
on the client side. With the CIS structure, the system has
capability to quickly respond to requests from the client side
once the status is abnormal. Integrating with multi-agent
technology, the agent on the client side can filter and pre-treat
the real-time RFID data and reduce the time and
communication cost to the server side. In addition, the client
agent can respond locally to the instructions from the server
side if abnormal event happens.
The organization of the rest of this paper is as follows.
Section 2 gives an overview of previous related work. Section
3 proposes the conceptual framework of the multi-agent based
intelligent vehicle routing system, and discusses each
functional part in detail. Section 4 implements the prototype
system based on a simulation platform. Section 5 concludes the
whole paper.
II. RELATED WORKS
A. RFID Technology
RFID is an automatic identification technology that uses
radio waves to automatically access information in wireless
environment [4]. Because this real-time information control is
increasingly important while goods are flowing through the
supply chain, logistic and supply chain management
application has often been regarded as the "killer application"
of RFID system, e.g., transportation information systems,
logistic information systems, or supply chain management.
Impacts ofRFID technology upon information system include:
improved control of stock and other assets [5,6]; improved
efficiencies in the supply chain, through faster and more
accurate exchanges of information between organizations [7];
tracking of shipments throughout the supply chain [8]. RFID
tags are attached to high value items for security purpose, and
integrated with sensors to monitor real-time environmental
status, which is very important for perishable goods as well as
hazardous material transportation [3].
B. Multi-Agent Technology
Multi-agent technology is an emerging sub-field of
distributed artificial intelligence that aims to solve a complex
problem by a loosely coupled network of problem solvers.
These problem solvers, often called autonomous agents,
interact to solve problems that are beyond the individual
capabilities or knowledge of each agent [9,10]. Multi-agent
technology provides solutions that efficiently use information
sources that are spatially distributed. By concurrent
computation, communication time and cost of the source data
and the central server can be reduced greatly, since only high-
level information instead of low-level source data are
transmitted back. Therefore, the first challenge as mentioned in
Introduction can be solved integrating multi-agent technology.
That is, RFID data can be collected and tracked along the
supply chain by monitoring agents, and interchanged via
resource agents on Cos. MA agent platform [11].
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C. Vehicle Routing Problem
Vehicle routing is an important function of logistic
information system. It is a combinatorial optimization problem
to minimize the cost of distributing the goods. Concerning
time-varying traffic flows, vehicle routing needs to respond
quickly to real-time requirements before queries are outdated.
It is also a real-time decision problem [12]. Many algorithms
and methods have been developed for searching for good
solutions to the problem. Geng proposed a transportation
information service system that transfers spatio-temporal
information by GPRS communication network [13]. Kim
developed decision-making procedures for optimal routing
policies under dynamic traffic flows based on a Markov
decision process formulation and real-time information [14].
Reference [15] proposed a genetic algorithm (GA) to optimize
vehicle routing problem with variable traveling time. In
reference [16], microscopic traffic simulation was integrated
into dynamic vehicle routing systems to simulate actual traffic
conditions. Similar works include reference [17], which
proposed an agent-based solution approach to handle job
arrival uncertainty.
In this paper, we propose an intelligent real-time vehicle
routing system for RFID-tagged perishable goods
transportation. Our work differs from the related research as
follows. First, we take the status (environmental and internal)
of in-transit goods into decision making, while traditional
transportation information system determines the optimal
vehicle route only based on geographical and traffic
information [13-] 7]. We further introduce a spoilage loss
function, which is dependent on the environments and the time
left to the deadline, with the purpose to minimize the total cost
including transportation cost and spoilage loss. Thirdly, we
propose a simulation-based optimization algorithm for the
proposed system considering the mathematical complexity of
the problem. This is due to the multiple sources of system
uncertainties, for example, real-time road status and real-time
in-transit goods status, which are often underestimated in the
traditional mathematical optimization algorithms, such as
combinatorial optimization and nonlinear programming
[14,15].
III. MODEL FORMULATION AND SOLUTION
We assume the following decision-making scenario like
Reference [14]. A cargo of perishable goods is delivered from
a predetermined depot to a targeting end location. The goods
have a limit life cycle and any delay exceeding the time limit or
changes of the environments during the transportation, such as
temperature and humidity, may cause spoilage loss. Once
departed, the driver must select the next intersection to visit,
based on the current traffic flow status and in-transit goods
status. The traffic flow status of the intersection and the linked
roads is observed only immediately prior to reaching it, while
the others are extracted and estimated from historically
statistical data. After reaching the next intersection, the cargo
driver again needs to observe the traffic status of the roads and
decide the optimal path to visit next. The trip continues till to
the end location.
A. Modelformulation
We consider an underlying network G=(N,L), with N={tlo,
... ,nm} the set of finite nodes, and L={lijlni' nj EN} the set of
undirected links in the network. The network G formulates a
network of roads (links) and intersections (nodes). Denote by
no the start node, and by n., the end node. A vehicle route R is
represented as a sequence of visited nodes (no,... ,nm), or a
sequence of passed links (loi,lij, ... ,lkm).
We use the following notations:
d ij = the distance between node n, and nj, and the length of
lij.In addition, dij=dji , and dii=O.
t ij = the time duration spent on road lij.
Vij = the average vehicle speed on road lij in the case of no
jam. In addition, Vij=Vji, and Vii=O.
V'ij = the real average vehicle speed on road lij. V'ij=Vifuij,
where Uij is a stochastic variable with probability density
function ~j. Uij is the uncertain part of the vehicle speed v', on
road lij. Considering when j am or other transportation events
occur, the speed will be lower as compared to the normal speed
Vij, Uij ~ 1. In addition, Uij=Uji, and Uii=O.
cij = the unit transportation cost per time if travelling road
lij. In addition, Cij=Cji, and Cii=O.
e = the environmental variable indicating the status of the
in-transit goods environments, such as temperature and
humidity.
P(~t,e) = the spoilage loss (cost) of perishable goods. It is a
function of travelling time t and environmental variable e.
Xij = the decision variable, if the selected vehicle route R
includes road lij,xij=l, otherwise, xij=O.
We also make the following assumptions in this paper:
• The cargo keeps a steady speed during road lij.
• The probability density function fij is time-
independent.
• We assume that the spoilage losses of in-transit goods
are smaller than the value of the goods. Moreover,
there is no further penalty if the goods are delayed.
The objective is to minimize the total cost of delivering,
including costs of transportation and spoilage losses of
perishable goods in transit.
In (1),
(2)
If not considering any time-dependent factors, this problem
is a classical statically shortest path problem for finding a path
between two nodes such that the sum of the weights of its
constituent links is minimized. Algorithms for solving this
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problem include Dijkstra's algorithm, Bellman-Ford algorithm,
etc. However, considering the time-varying in-transit goods
status and the real-time traffic flow status, the problem
discussed here is very challenging in computation.
B. Simulation based Optimization Algorithm
Considering the uncertainty of transportation status and the
uncertainty of the in-transit goods status, we propose in this
paper a simulation-based algorithm.
The uncertain factors of the problem are simulated and
generated by random variable generators in a computational/
simulation model. The optimal vehicle route is in the sense of
statically optimal. The algorithm is described as follows:
1) Fetching real-time status information of in-transit
goods, e, and the accumulated transporting time till the
current clock time;
2) Fetching real-time traffic flow status information about
observed roads and current position ofthe vehicle on the road
network;
3) Generating aij for each un-observed roads by random
variable generator, according to its empirical stochastic
distribution;
4) Seeking and recording the optimal vehicle route by the
objective in (1) using Dijkstra's algorithm, with these
deterministicfactors;
5) Repeating Step 2 to Step 4 until the times of loops
reaches the given number- n;
6) Extracting and outputting the statistically optimal
vehicle route from N candidates. If the best vehicle route is
more than one, the algorithm will list all the alternatives,
leaving for decision-maker to decide.
IV. REAL-TIME VEHICLE ROUTING SYSTEM
We integrate the simulation algorithm with information
technology as an intelligent vehicle routing system, seeking the
optimal vehicle route. Real-time status information of in-transit
goods is collected by attached RFID tags. This information
along with real-time location information is fed back by
telecommunication network, for example, short message
system. The goal of the embedded optimization engine is to
minimize the time and cost of distributing the goods, including
both transportation fee and potential losses if perishable goods
are decayed in transit. In addition, transportation time from one
location to another varies at different times of day, traffic
conditions and so on. The optimization engine uses simulation
approach to generate uncertain and random factors of the
dynamic traffic conditions, and seeks the optimal route in
statistically sense.
The purpose of the proposed system is to develop
intelligent decision-making procedures for determining the
optimal vehicle route under time-varying traffic flows and real-
time goods status. A practical constraint is that the respond to
the query of the driver should be quick, before the vehicle has
already passed through the intersection.
A. System Overview
In the proposed system, real-time goods information is
collected by a mobile RFID Reader that is embedded in the
Smart Phone, as shown in Fig. 1. This information, along with
current cargo location information and the observed traffic
flow information, is pretreated and packed by agents on the
Smart Phone. It then is fed back to the Enterprise Server (ES)
via the Short Message System of Telecommunication Network,
and stored in the Information Server (IS) by ES. The ES
simultaneously forwards the path selection request to the Real-
time Vehicle Routing System (RVRS). Continually, the RVRS
system queries real-time in-transit goods information, traffic
flow information and cargo location information from the IS,
and finds an optimal route according to this information.
Finally, the route will be sent to the Smart Phone via the Short
Message System. This process continues till the cargo arrives
at the destination.
Figure 1. Deployment Diagram of the Proposed System
As shown in Fig. 1, low-level data transfer is done by our
previous work- a multi-agent based Goods Tracking System
[3]. Therefore, RVRS System can get well-structured real-time
information from database of the IS. It needs only to focus on
building computational model based on real-time information,
and finding the optimal routes using simulation-based
optimization technology.
Fig. 2 shows the architecture of the RVRS System. It is also
constructed on multi-agent platform.
Figure 2. The RVRS System Architecture
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The Management Agent is the central unit of the RVRS
System. It is triggered by the optimal route finding request
from the cargo driver via ES Interface. When the request is sent
to the Management Agent, it fetches real-time information
from the IS via IS Interface. This real-time information is
forwarded to the Optimization Agent. The Optimization Agent
then fetches information of traffic network, e.g. distances of
roads, empirical stochastic distributions of traffic flow, from
the GIS System by the GIS Agent. In this way, observed and
un-observed traffic flow information, current cargo location
and in-transit goods information are input to the Simulation
Agent by the Optimization Agent. In each simulation life-
cycle, the Simulation Agent generates aij for each un-observed
roads, and outputs the best route according to currently
deterministic information and given stochastic distributions of
aij factors. Then, the Optimization Agent finds the statistically
optimal routes from N candidates resulted by the Simulation
Agent. Finally, the best routes will be transferred to the cargo
driver by the Management Agent through the ES Interface.
V. PROTOTYPE SYSTEM
A prototype system is implemented and compiled on Java
platform, including multi-agent simulation platform- Repast
3.0 (http://repast.sourceforge.net), J2SE Development Kit 5.0
(http://java.sun.com/javase/index.jsp) for server-side Java
application, and J2ME Wireless Toolkit 2.0
(http://java.sun.javame/index.jsp) for elient-side Java
application. Additionally, the real-time information is managed
by MySQL 4.1 (http://www.mysql.com) database management
system.
Assuming that at time To (=0), the driver of the cargo
queries the optimal route at location nearby the No node of a
20-Node traffic network. The destination of the cargo is the N 19
node. In this scenario,
• The distance dij is a uniformly distributed integer value
between 1 and 100, except that the distance between
the No node with the N 19 node is infinite;
• The average vehicle speed Vij is a uniformly distributed
integer value between 1 and 10;
• The average transportation cost Cij is a uniformly
distributed integer value between 1 and 5;
• The uncertain factor of observed road aOj 0=1, ...,19),
1/uoj, is a uniformly distributed float value between 1
and 2;
• The reciprocal value of the uncertain factor of un-
observed road aij (i =F 0, j= 1, ... ,19) is a Gaussian
(normally) distributed double value with mean 1.0 and
standard deviation 1.0, N(l ,0);
• The loss function of perishable in-transit goods P(Lt,e)
is a S-sharp function,
P(Lt,e)=15/(I +e k(T ' -}:t)(1- 1-e/e' I»)
1 (3)
In (3), k is a coefficient (k=2) for the environmental
variable e; T' is the time when the losses of goods is half of the
total (T'=10); and c' is the optimal value for the environmental
variable (e'=5). It means that when environmental variable e
violated the optimal value e', the process of perishing is
accelerated.
represents the time for calculating the optimal route at the
client-side on the smart phone. From Table 1, we observe that
multi-agent technology with CIS system architecture improves
performanceof the system significantly-the average spent time
reduces 278 times, from 11.5088 seconds to near one hour (53
minutes and 22.7525 seconds). Here we ignore the
communicationtime for request sending and replying between
the client and the server side in the first situation (running on
J2SE platform), for example, the short message
communicationtime is ignored.
To compare with the traditional optimal routing algorithm
that evaluates the randomization of uncertain factors by their
expected values, we also calculate the optimal routes of the
given traffic network with the expected values of aij. The route
is (nO,ng,nI9). By our simulation-based optimization algorithm,
we find 100 optimal route candidatesas listed in Table 2.

Figure 3. The Losses Function of Perishable Goods TABLE II. THE 100 OPTIMAL ROUTE CANDIDATES
No. Route Freq. No. Route Freq.
As shown in Fig. 3, the spoilage loss of perishable goods
increases slowly at first, and then rapidly as an exponential 1 (no,lls,ll19) 41 8 (1lo,il(),ll17, ll19) 2
growth. Finally, the loss will reach the max value- the value of 2 (llo,ll14,ll19) 20 9 (no,lllS,ll3, ll19) 2
the in-transitgoods, accordingto our assumption3. 3 (llo,ll15,ll19) 13 10 (no,ll15,ll9, ll19) 1
4 (llo,ll15, lls,ll19) 7 11 (no,ll2, ll19) 1
• The environmental variable e is a Gaussian distributed
5 5 12 1
double value with mean 10.0 and standard deviation (no,il(),ll5, ll19) (no,lll2,ll2, ll19)

1.0; 6 (no,lll2, ll19) 4 13 (llo,ll14,lll2,lll,llll,ll3, ll19) 1

• The times of loops N is 100.
We implement the algorithm and run it on personal
computer (J2SE platform) and on smart phone (J2ME platform)
separately. The hardware configuration of the personal
computer is IBM Thinkpad notebook T30 (Intel Pentium 4
Mobile CPU 1.60 GHz, 256 MB of RAM. Go Web site
http://www-307.ibm.com/pc/support/site.wss/MIGR-2218.html
for detail configuration of the notebook). The time spent is
recorded in Table 1.
7 (no,il(),ll2, ll19) 2
The candidates are also displayed on the screen of the
RVRS system. The decision-maker can manage the candidates
as need. In Fig. 4, the "Node-O" labeled, oval shaped red node
is the beginning node, and the "Node-19" labeled, oval shaped
red node is the ending node. The other "Node-?" labeled,
rectangular shaped blue nodes are the middle nodes. The links
between nodes are links belonging to the candidates, with
weight of their frequencies.

TABLE I. TIME SPENT FOR THE SIMULATION-BASED OPTIMIZATION

ALGORITHM ON DIFFERENT PLATFORM (HH:MM:SS.MS)
N The Algorithm Run The Algorithm Run
o. On J2SE Platform On J2ME Platform
StartTime EndTime Duration StartTime EndTime Duration
1 9:31:28.171 9:31:39.557
11.386 13:35:29.998 14:30:03.225 54:33.227
2 9:31:52.536 9:32:03.910
11.374 14:32:31.620 15:22:26.199 49:54.579
3 9:32:09.890 9:32:20.766
10.876 16:19:56.210 17: 12:56.473 53:00.263
4 9:32:25.820 9:32:36.449
10.629 17:30:42.870 18:22:59.260 52:16.390
5 9:32:41.967 9:32:53.183
11.216 18:38:48.563 19:32:41.281 53:52.718
6 9:32:57.759 9:33:11.349
13.590 19:38:37.533 20:38:34.335 59:56.802
7 9:33:17.197 11.236 20:57:29.818 21:50:48.758 53:18.940
9:33:28.433
8 9:33:33.100 9:33:43.425
10.325 21:56:32.345 22:51:59.299 55:26.954
9 9:33:47.811 9:33:59.859
12.048 22:51:57.523 23:42:20.239 50:22.716
10 9:34:05.517 9:34:17.925
12.408 23:47:53.308 00:38:58.246 51:04.938
Average Duration 11.5088 53:22.7525
In Table 1, the duration time for the algorithm running on
J2SE platform is the time for calculating the optimal route at
the server-side on a high performance machine, while the Figure 4. Snapshot ofRVRS System Server's GUI
duration time for the algorithm running on J2ME platform

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 The optimal routes are immediately sent back to the Smart
Phone by SMS system. They are displayed on the screen of the
Smart Phone, as Fig. 5 shown. As a result, the driver of the
cargo can choose the path according to the guidance.
Figure 5. Snapshot of Smart Phone's GUI
VI. CONCLUSIONS
Noticing the importance of real-time transportation
information, and the importance of real-time environmental
information of perishable goods, which is tracked by RFID tags,
this paper proposes an optimal vehicle routing system for
dynamic shortest-path finding. The objective is to minimize the
total transportation cost and the spoilage loss due to delay
delivery and environments changes of the perishable goods. So
far as we know, this is the first work introducing such a
spoilage loss function into the objective function of vehicle
routing problem. Considering the mathematical complexity of
the problem, and the multiple sources of system uncertainties,
we propose a simulation-based optimization algorithm, and
integrate it into an intelligent transportation system. We finally
implement a prototype system and show that using multi-agent
technology, the system performance is much better.
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