Enhancing Vehicle Routing Efficiency through Branch and Bound and Heuristic Methods

Abstract

The Vehicle Routing Problem (VRP) is a critical challenge in logistics, impacting delivery efficiency and costs. Traditional VRP solutions often fail to address real-world dynamics such as fluctuating traffic conditions and varying customer demands. This research proposes a novel VRP model integrating real-time data to enhance route optimization. By combining the precision of the Branch and Bound (B&B) approach with the flexibility of heuristics like Genetic Algorithms and Simulated Annealing, the hybrid method dynamically adjusts routes based on live traffic and demand updates. The objective is to reduce operational costs and improve logistical performance. The hybrid model’s effectiveness is validated through comparative analysis with traditional VRP solutions, demonstrating significant improvements in cost reduction, fuel consumption, vehicle wear and tear, and customer satisfaction due to timely deliveries. These advancements highlight the potential of real-time data integration and advanced optimization techniques in providing robust solutions for modern logistics challenges. Future research should focus on incorporating more advanced data sources and testing the model in various real-world scenarios to further enhance its practicality and performance, ensuring businesses remain competitive in a dynamic market. This study underscores the importance of continuous innovation in VRP solutions to achieve sustainable, efficient, and customer-centric logistics operations.