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Vehicle routing in a Spanish distribution company: Saving using a savings-based heuristic

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Abstract

In this article we present a Vehicle Routing Problem (VRP) faced by a large distribution company in the Northeast of Spain. The company distributes products from its central facilities to a chain of around 400 stores all over the country. One of the peculiarities of the VRP of this company – which is common among real-life VRPs – is the presence of a heterogeneous fleet where vehicles with different capacities can make multiple trips during a single day. This variant of the problem, which we refer as Heterogeneous Fleet and Multi-trip VRP, has been barely studied in the literature. To solve the problem, we use an algorithm based on the well-known savings heuristic with a biased-randomization effect and three local search operations. Our approach is simple to implement as it needs few parameters and no fine-tuning processes, which are usually cumbersome and require experts’ involvement. We obtain savings of around 12 per cent in transportation costs, which represent around €30 000 saved per week.

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Acknowledgements

This work has been partially supported by the Spanish Ministry of Science and Innovation (ECO2009-11307, TRA2010-21644-C03) and the CYTED-HAROSA Network (CYTED2010-511RT0419), in the context of the IN3-ICSO program (http://dpcs.uoc.edu) and the Business Analytics Research Group (http://www.upf.edu/barg/). We acknowledge the personnel of the distribution company for their cooperation in this project.

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Correspondence to Alex Grasas.

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Grasas, A., Caceres-Cruz, J., Lourenço, H. et al. Vehicle routing in a Spanish distribution company: Saving using a savings-based heuristic. OR Insight 26, 191–202 (2013). https://doi.org/10.1057/ori.2013.2

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