A Vehicle Routing and Scheduling Model for a Distribution Center

Abstract

One key role along green supply chain is the distribution center which has the responsibility to deliver the commodities to the customers and collect the end-used products back to the center for further process. This activity requires a distributor to determine how many vehicles with what sizes along which routes to deliver commodities so that the demands from all customers will be satisfied within customers’ available time with minimum operation cost. This problem can be classified into a vehicle routing and scheduling problem with multiple vehicle types and service time windows. In practice, the complexity of the problem requires a structural model to facilitate general analysis and applications. However, also because of its complexity, an efficient solution procedure is equivalently important. Therefore, in this study, we have first developed a model for a distribution center to support the decisions on vehicle types and numbers; as well as the routing route and schedule so that the overall operation cost will be minimized. Since this model of vehicle routing and scheduling problem with multiple vehicle types and multiple time windows (VRSP-MVMT) is a nondeterministic polynomial time (NP)-hard problem, we have developed a genetic algorithm (GA) for efficient solution. The efficiency and accuracy of the algorithm will be evaluated and illustrated with numerical examples.