Capacitated vehicle routing problem with time window on optimizing delivery networks: A case study of Gia Thinh distribution Co.

Abstract

This thesis presents a successful application of operations research to improve the distribution efficiency and increase customer service quality. The case study is Gia Thinh Co. Distribution Center for building materials in Ho Chi Minh city. Mathematical model capacitated vehicle routing with time windows was created with 46 service points (nodes) to be serviced by trucks in one week. Route for trucks is single and if the potential amount of truck at node exceeds the capacity of trucks, that node will need outsource. The model was solved by CPLEX to find the optimum solution for the vehicle routine. The solution given by CPLEX was better that the current one by in terms of total traveling distance and number of outsourced vehicles. The result of this study may help the company to improve their delivery system to keep on business or in vested in buying more trucks to serve more customer orders. Keywords: capacitated vehicle routing with time windows, CPLEX