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Open source business analytics solution for capacitated vehicle routing problem

Author

Listed:
  • Justin Schwartz
  • Michael A. Womack
  • Ann Kranz
  • Burcu Adivar

Abstract

This study introduces a mathematical formulation and an open source solution to optimise the distribution routes of a multinational FMCG supply chain in an effort to improve delivery times, reduce overhead, streamline its fleets and balance the workload. Combinatorial optimisation is utilised to determine a set of routes that satisfies all customer demands while satisfying all operational constraints and minimising the cost. ODL Studio 1.4.1 was used to process and overlay data points onto a local map of real-world roadways. Solving the CVRP reduced the fleet size, decreased the overall route time by over four hours, eliminated 161 kilometres (25.6%) of daily travel distance and reduced gas consumption by over 3,000 gallons of fuel used each year. Application of this method to all routes will likely produce a synergistic effect as savings will be maximised across all routes and new savings may be acknowledged by the optimisation of interregional distribution.

Suggested Citation

  • Justin Schwartz & Michael A. Womack & Ann Kranz & Burcu Adivar, 2022. "Open source business analytics solution for capacitated vehicle routing problem," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 42(1), pages 35-52.
    • Handle: RePEc:ids:ijlsma:v:42:y:2022:i:1:p:35-52
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