Capacitated vehicle routing problem with time windows and limited vehicles. A case study of SaiGon Coop.

Abstract

This thesis will focus on resolving the Vehicle routing problem or Traveling salesman problem, a topic of interest for various researchers and universities in recent years. An extension of VRP, called VRPTW or Vehicle routing problem with Time Window and - specifically- m-VRPTW or Vehicle Routing Problem with Time Window and limited vehicles is implemented in the case study of Saigon Coop. The main goal of this thesis is to resolve the company’s limited number of vehicles with the use of third-party vehicle (3PL) to maximize the amount of customer served while minimizing the total cost used by the operation, whether through minimizing travel distance or the reduction of vehicle used, despite the limitations. This goal is solved by a mixed-integer linear model generating an exact solution using an optimization software named CPLEX. The results generated from the Saigon Coop data are analyzed and recommendation are made in regards to Saigon Coop’s demand. Keywords: Vehicle routing problem, m-VRPTW, time window, limited vehicles, CPLEX