Vehicle Routing Problem With Time Windows: A Case Study Of Alta Plastic Company

Abstract

The efficient distribution of goods is critical for minimizing both vehicle travel distances and overall transportation costs. This study focuses on addressing these challenges through the application of Mixed-Integer Linear Programming (MILP) algorithms to develop a customized Vehicle Routing Problem with Time Windows (VRPTW) model for ALTA, a plastic packaging manufacturing company. Real-world data from ALTA was used to validate the model, with testing completed by December 17, 2023. The results demonstrate significant improvements in transportation efficiency, achieving the goals of reducing per-vehicle travel distances and optimizing transportation expenses. The study emphasizes the effective application of MILP solvers, such as CPLEX, in tackling complex vehicle routing issues. This approach not only enhances operational efficiency but also improves cost-effectiveness in logistics management, showcasing its potential for broader application across various industrial sectors.