Delivery route optimization and its applications, with examples from logistics in banks

This paper proposes an algorithm for delivery route optimization problems
and describes its application to real problems in Japanese banks.
For delivery route optimization problems in the real world,
an algorithm is required to minimize the number of routes
while handling various complicated constraints.
Techniques for modeling real problems with an abstract model
provided by the algorithm are also required.
The algorithm proposed in this paper provides a model and constraints
that were designed for describing real problems,
such as deliveries from multiple depots, time windows of customers, and
reuse of vehicles.
A mechanism for minimizing number of routes used by
the algorithm, called the {\em objective tuning method},
guides local search so that selected routes will shrink and disappear.
Through case studies of logistics problems in Japanese banks,
the algorithm is shown to be capable of modeling and solving real problems.

By: H. Okano

Published in: RT0309 in 2002

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