The vehicle routing problem with time window and return: A case study of lazada's hub

Abstract

Vehicle Routing Problem with Time Window (VRPTW) has become the ubiquitous consideration in the real world, especially in transportation for delivering products to customers effectively and efficiently. Thanks to the development of the Internet, purchasing power is increasing significantly and shipping service is utilized which leads to the increase in the number of cancelled or redelivered customers’ orders. In order to maintain the level of customer service, save transportation cost, increase successful delivery rate in case of the aforementioned problem, Vehicle Routing Problem with Time Window and Return (VRPTWR) was applied to solve this situation. In detail, this thesis based on the concept and model of VRPTW to modify for a suitable model including the additional element which is returned products. The modified model was designed for the fleet of homogeneous vehicles. The result of this method found out the Expected Successful Orders (ESO) and the traveling cost for a small size of customers. The technical details were discussed. In this work, the proposed model was applied for Thu Duc hub of Lazada. Keywords: VRPTW, VRPTWR, Expected Successful Orders, Homogeneous fleet of vehicles, Successful delivery rate.