Solving a heterogeneous fleet multi-compartment vehicle routing problem:a case study

Abstract

Vehicle Routing Problem (VRP) is a complex optimisation problem in the field of supply chain management, especially in the Oil & Gas sector. Due to the rising cost of fuel, effective planning of transportation routes has become a crucial success factor for distribution companies, increasing operational efficiency as well as the corresponding service level. In this paper, we present an optimisation model to solve a heterogeneous fleet multi-compartment vehicle routing problem (MCVRP), a variant of the conventional vehicle routing problem (VRP). Real data are obtained from a medium size oil distribution company, operating in Greece and incorporates 19 petrol stations served from a central oil depot using a fleet of various multi-compartment tanker trucks. The main objective of this research is to design an optimum set of routes minimising distance and truck operating costs. The MCVRP with a heterogeneous fleet of vehicles is modelled as a Mixed-Integer Linear Programming (MILP) problem and the proposed solution determines the number of assigned vehicles, the planning of daily routes and the allocation of different fuels to vehicles compartments, while satisfying customer demand following specific requirements, as detailed in the Carriage of Dangerous Goods (ADR) Regulations.