Open source business analytics solution for capacitated vehicle routing problem

Document Type

Conference Proceeding

Publication Date

1-1-2022

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.

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