Article ID: | iaor200962672 |
Country: | Turkey |
Volume: | 18 |
Issue: | 4 |
Start Page Number: | 2 |
End Page Number: | 13 |
Publication Date: | Oct 2007 |
Journal: | Endstri Mhendislii Dergisi |
Authors: | Ozkarahan Irem, Mizrak Ozfirat Pinar |
Keywords: | distribution, vehicle routing & scheduling, programming: integer, retailing |
This paper considers fresh goods distribution of a retail chain store in Izmir. The problem is formulated as a vehicle routing problem with a heterogeneous fleet. Although there are exact algorithms available in the literature, to the best of our knowledge, none of them is able to solve large scale instances optimally. The proposed algorithm decomposes the main problem into subproblems and simultaneously allocates vehicles to a number of NP-complete subproblems. Then integer programming is employed to solve subproblems. Also, non-split and split delivery strategies are tested for the distribution. Solutions of both strategies are compared with the current performance of the firm. Results indicated considerable improvement in the performance.