Article distinguished in the 4th edition of the “Piórem logistyka” competition.
Problem
Many companies in a highly competitive environment strive to rationalize their operations so that they become their competitive advantage. One of the main branches requiring optimization of operations is logistics, including the distribution system. Manufacturing companies incur significant costs associated with the distribution of their goods to customers. Route optimization, using mathematical models and computers that can effectively solve even complex problems, usually allows for cost reduction while increasing the level of customer service. The work of a logistician is inevitably becoming associated with faster and faster computers and tools for optimizing all company operations.
Many companies in a highly competitive environment strive to rationalize their operations so that they become their competitive advantage. One of the main branches requiring optimization of operations is logistics, including the distribution system. Manufacturing companies incur significant costs associated with the distribution of their goods to customers. Route optimization, using mathematical models and computers that can effectively solve even complex problems, usually allows for cost reduction while increasing the level of customer service. The work of a logistician is inevitably becoming associated with faster and faster computers and tools for optimizing all company operations.
Every manufacturing company that distributes its products struggles with the problem of a limited amount of resources (vehicles), for which it incurs specific expenses while fulfilling customer orders. It must be remembered that it is impossible not to service any of the accepted orders. The issue we are dealing with here is the so-called multiple traveling salesman problem with constraints. The single traveling salesman problem can be presented as follows: a traveling salesman (driver) has to deliver goods to various cities. After finishing their work, the traveling salesman must return to the starting city. They should choose the shortest route. In other words, the appropriate order of cities to be visited by the traveling salesman must be chosen. In distribution, we are dealing with the multiple traveling salesman problem, because the orders to be fulfilled are divided among a larger number of vehicles. Additionally, each route must meet the constraints imposed on it, such as driver working time, limited vehicle capacity and load capacity, or time windows in which the goods are to be delivered to the customer.
LCS Logistics deals with the distribution of its clients’ goods. As part of this service, vehicles with goods depart from warehouses managed for our clients to the recipients. Permanently contracted drivers constitute a resource that LCS Logistics uses every day.