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Title: Vehicle routing in a spanish distribution company: Saving using a savings-based heuristic
Author: Grasas, Alex
Cáceres Cruz, José de Jesús
Lourenço, Helena R.
Juan Pérez, Ángel Alejandro
Roca Puigvert, Mercè
Others: Universitat Oberta de Catalunya. Internet Interdisciplinary Institute (IN3)
Universitat Oberta de Catalunya (UOC)
Universitat Pompeu Fabra
ESCI International Business School
Keywords: heterogeneous vehicle routing problem
multi-trip vehicle routing
savings heuristic
randomized algorithms
real-life applications
Issue Date: 13-Mar-2013
Publisher: OR Insight
Citation: Grasas, A., Caceres, J., Lourenço, H., Juan, A.A. & Roca Puigvert, M. (2013). Vehicle routing in a Spanish distribution company: Saving using a savings-based heuristic. OR Insight, 26(3), 191-202. doi: 10.1057/ori.2013.2
Project identifier: info:eu-repo/grantAgreement/ECO2009-11307
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Abstract: In this article we present a Vehicle Routing Problem (VRP) faced by a large distribution company in the Northeast of Spain. The company distributes products from its central facilities to a chain of around 400 stores all over the country. One of the peculiarities of the VRP of this company -which is common among real-life VRPs- is the presence of a heterogeneous fleet where vehicles with different capacities can make multiple trips during a single day. This variant of the problem, which we refer as Heterogeneous Fleet and Multi-trip VRP, has been barely studied in the literature. To solve the problem, we use an algorithm based on the wellknown savings heuristic with a biased-randomization effect and three local search operations. Our approach is simple to implement as it needs few parameters and no fine-tuning processes, which are usually cumbersome and require experts' involvement. We obtain savings of around 12 per cent in transportation costs, which represent around h30000 saved per week.
Language: English
ISSN: 0953-5543MIAR
Appears in Collections:Articles

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