Open source business analytics solution for capacitated vehicle routing problem

Justin Schwartz, Michael A. Womack, Ann Kranz and Burcu Adivar

International Journal of Logistics Systems and Management, 2022, vol. 42, issue 1, 35-52

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.

Keywords: vehicle routing problem; VRP; FMCG supply chain; ODL Studio; OpenStreetMap; open source VRP solver. (search for similar items in EconPapers)
Date: 2022
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