An optimisation model for optimal and sustainable distribution

Rok Strašek

International Journal of Sustainable Economy, 2013, vol. 5, issue 2, 176-192

Abstract: In many companies, a large share of costs in value chains is due to the distribution logistics. The problem is known as the vehicle routing problem (VRP) and many different algorithms are used for approximate solutions. The main point of the problem is to carry out deliveries from the central storage facility to all customers incurring minimal costs. This paper aims to present development and implementation of such a model and its application for a special distribution and customer network. Although the conceptual idea of the model is primarily based on the economical cost optimisation and consequentially on as much profit as possible, the model can simply be upgraded with ecological or environmentally friendly aspects. So the aim of the model is an optimisation tool upgraded by sustainable development of logistics and distribution.

Keywords: distribution logistics; vehicle routing problems; VRPs; optimisation models; simulation; visualisation; Slovenia; optimal distribution; sustainable distribution; value chains; algorithms; approximate solutions; deliveries; central storage facilities; customers; minimal costs; distribution networks; customer networks; cost optimisation; economical costs; profits; ecological aspects; environmentally friendly aspects; optimisation tools; sustainability; sustainable development; sustainable economy. (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsuse:v:5:y:2013:i:2:p:176-192

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