Vehicle Routing Problem With Time Windows: A Case Study Of Bolloré Logistics

Abstract

With the development of technology, this leads to an increase of demand for electronic devices, especially in smart devices such as smartphones, laptops, tablets, etc. To meet the uprising order from stores while satisfying their requirement as soon as possible and save the transportation cost of delivering products. The Vehicle Routing Problem with Time Window (VRPTW) was applied to the real case study of FPT Retail. The solution model was proposed based on the basic concept of VRPTW to fix into the real case study. The model’s objectives were to accomplish both company and store needs. The model will be run under CPLEX Studio IDE 12.10.0 for the extract solution. Moreover, a combination of the cluster-first – route-second method and k-means clustering algorithm is developed in forming the group of stores in each cluster for running this proposed model by MATLAB. A sensitivity analysis will be conducted to discover the change of three main criteria that are transportation cost ($), distance travelled (km), and computation time (s). By applying the optimal model for this case study, a new road network will be built for the best delivery service of goods from FPT warehouse to FPT stores across Ho Chi Minh and this new network can help the drivers to low the travel time and minimize transportation cost and the manager in making fast and effective solutions based on the most economical options for costs, vehicle numbers, delivery times, and vehicle capacity efficiency.