This paper describes an exact solution approach for the Vehicle Routing and scheduling Problem with Soft Time Windows (VRPSTW), and presents its application on a realistic logistics instance based on the VICS (Vehicle Information and Communication System) data, an ITS application in Japan. Exact solutions of VRPSTW have been compared with those of the Vehicle Routing and scheduling with Hard Time Windows (VRPHTW). Detailed analysis of environmental issues and idling time along with the traditional comparison of cost and number of vehicles, shows that the exact VRPSTW solutions are not only cost efficient but helpful in reducing congestion, which implies these are more environmentally sustainable.
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