The Development Algorithm for Determining Vehicle Routing to Minimize Transportation Cost.
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Abstract
In this research, a special type of actual transportation problem is investigated. Customers are grouped into different zones according their locations and transportation costs for customters from a logistics service provider (LSP) are set according to the zone. The further zone from the origin will cost more. The transportation cost charged by the logistics service provider is equal to the transportation cost of the furthest zone. For instance, if there two customers in zone A and two customers in zone B, and suppose that two trucks are needed and zone B is further than zone A, it would be better to schedule two customers in zone A in one trucks and two customers in zone B in another. If both trucks have to deliver products in both zone A and B, the transportation cost will be more. Previously, this problem has been sovled by an existing algorithm which bases on the experienceof the truck schedulers. Thus a mathematical model and a new algorithm are developed. From the experimental results, the saving of five percent can be obtained from the new algorithm.
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References
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