A heterogeneous fleet vehicle routing model for solving the LPG distribution problem: A case study

Abstract

Vehicle Routing Problem (VRP) is an important management problem in the field of distribution and logistics. In VRPs, routes from a distribution point to geographically distributed points are designed with minimum cost and considering customer demands. All points should be visited only once and by one vehicle in one route. Total demand in one route should not exceed the capacity of the vehicle that assigned to that route. VRPs are varied due to real life constraints related to vehicle types, number of depots, transportation conditions and time periods, etc. Heterogeneous fleet vehicle routing problem is a kind of VRP that vehicles have different capacity and costs. There are two types of vehicles in our problem. In this study, it is used the real world data and obtained from a company that operates in LPG sector in Turkey. An optimization model is established for planning daily routes and assigned vehicles. The model is solved by GAMS and optimal solution is found in a reasonable time.