Urban customized bus companies are increasingly motivated by design efforts that entail more efficient route scenarios to incorporate adaptation to temporal and spatial hetero-geneity in travel demand. However, such motivations are usually hindered by ubiquitous arrival unpunctuality resulting from traffic congestion. To resolve this problem, we suggest a time-dependent bus route planning methodology that explicitly considers path flexibility between nodes to be visited. First, we establish a mixed-integer programming model to formulate the problem, where decision-making considerations in bus route planning, path choice between nodes, and passenger assignment are concurrently integrated. Then, we develop a hybrid metaheuristic (combining tabu search and variable neighborhood search) to solve the model, in which satisfactory performance is observed from the numerical test in a small-sized example. Finally, the problem and methodology are addressed in a city-scale instance, where the effects of time-window features and traffic congestion, as well as the benefits from path flexibility inclusion in terms of cost, travel time, and distance are investigated.
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