IMPROVING AND ENHANCING TRANSPORTATION MANAGEMENT BY APPLYING THE VEHICLE ROUTING PROBLEM (VRP) CONCEPT: A CASE STUDY OF ABC COMPANY LIMITED Research Article
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Abstract
The purpose of this research is to: 1) study the current transportation system and route planning practices of ABC Company Limited by applying the Vehicle Routing Problem (VRP) concept; 2) improve transportation routes to reduce delays, distance, and delivery time; and 3) reduce fuel costs and opportunity losses in other areas. The tools used in this study include: 1) VRP software, which serves as the primary tool for designing optimal and efficient delivery routes; 2) Microsoft Excel, used for storing basic data such as delivery points, coordinates, distances, shipment volumes, and vehicle capacities; and 3) the Fishbone Diagram, which is used to analyze the root causes of problems. The research findings revealed that the main issues include delays, redundant routes, and high costs. The results of the study showed that the newly designed route planning approach reduced the monthly transportation distance from 17,171 kilometers to 15,505 kilometers, a reduction of 1,666 kilometers, or approximately 9.7%. The number of trips decreased from 240 to 196, fuel costs were reduced by approximately 10,712.38 Baht per month, and overall transportation efficiency was improved. This led to greater customer satisfaction due to faster and more accurate deliveries. This research demonstrates that analytical techniques and efficiency enhancement tools can effectively elevate logistics management performance.
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This article is published and copyrighted by the Science and Technology Journal. South East Bangkok College
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