Is time more important than distance to optimize freight delivery routes? An approach using the value of time

Abstract

Traditional approaches to optimize freight delivery routes are based on minimizing a distance-based cost function. New approaches use also time as the objective function to minimize. However, the trade-off between time and distance is sometimes unclear. This paper presents a new approach to optimize delivery routes in which both time and distance are used together to optimize delivery routes. For this purpose, the operating cost of a vehicle and the value of time have been used to convert time and distance into monetary units. Through the study of three different networks in Spain with different level of detail (the region of Catalonia, the city of Barcelona, and the old part of Pamplona), the results have indicated that minimizing both time and distance provides better results than the traditional approach, especially at a local level where congestion effects are more relevant.