A capacitated vehicle routing problem model for stationery industry

Abstract

This paper aims to present an optimization solution for the distribution of stationery products with a seasonal demand pattern. The problem is structured as the capacitated vehicle routing problem is one-to-many with multiple products, where each customer has a variety of product types and demands. It is observed that yearly distance has varied by 43% between the season and off-season periods and the total distance savings throughout the year is around 40%. A mixed-integer linear programming model was used to give an optimal solution and the Gurobi solver was used to arrive at the solution. The objective of the research is to determine the appropriate number of vehicles used to complete the delivery process in both seasonal and off-seasonal periods, together with the route sequence of every vehicle, such that the distance-related costs are minimized with effective vehicle capacity utilization.