Design of an IT-driven decision support system for vehicle routing and scheduling

Abstract

This paper presents the development of a decision support system used by an oil downstream company for routing and scheduling purposes. The studied problem refers to a complex delivery process of oil products from a number of distribution centers to all customers. The latest rapid advance of operations research (OR) applications, in the form of advanced planning and scheduling (APS) systems, has shown that OR algorithms can be applied in practice if (a) they are embodied in packaged information technology (IT) solutions, (b) the interface problems to mainstream ERP software applications are solved. In this study the utilisation of advanced IT systems supports effectively the planning and management of distribution operations. The combination of a supply chain management (SCM) application with a geographical information system (GIS) integrated with an enterprise resource planning (ERP) software resulted to this innovative decision support tool. The objectives of this new tool are: optimum use of the distribution network resources, transportation cost reduction and customer service improvement. The paper concludes with the benefits of the new system, emphasising at how new technologies can support transportation processes with the help of operations research algorithms embedded in software applications.