Analysis and Development of Transportation Approaches to Reduce Logistics Costs Using the Large Neighborhood Search Algorithm
Keywords:
logistics cost reduction, vehicle routing problem with pickup and delivery, large neighborhood search algorithmAbstract
This research focuses on analyzing and developing a transportation management approach to
reduce logistics costs for a logistics company. The company is responsible for transporting automotive components from component manufacturers to automotive assembly plants. The proposed transportation management approach addresses the Heterogeneous Fleet Capacitated Vehicle Routing Problem with Pickup and Delivery (HFCVRPPD). Three approaches were considered. Approach 1 involves grouping pickup points with common delivery points and synchronized pickup times. Approach 2 entails grouping pickup points with common delivery points and closely scheduled pickup times. Approach 3 involves grouping pickup points with proximate delivery points and closely scheduled pickup times. The Large Neighborhood Search (LNS) algorithm is utilized to find solutions. The findings reveal that the third approach provides the most significant reduction in logistics costs for the company, achieving a 58.52% reduction. Additionally, it improves the average vehicle capacity utilization efficiency from the original 58.07% to 92.60%.
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