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Vehicle Routing problem at a Reginal Discout Company

This is a project that explains how I used NodeXL and VRP solveer for a Supply Chain Distribution Analysis.

Background

This case focuses on the vehicle routing decision for a regional discount store chain based in Oregon. The company has one distribution center in Albany, OR that delivers shipments each day to 15 stores in Oregon and southwest Washington.

The distribution center has small refrigerated and frozen sections to accommodate the small number of stock-keeping-units (SKUs) that require these special conditions.It is not practical for these 15 stores to receive shipments directly from suppliers. This would require expensive less-than-truckload (LTL) transportation and dedicated receiving personnel to handle the stream of shipments each day. Instead, the distribution center in Albany, OR receives full truck-load shipments from all suppliers and builds mixed pallets of products to fulfill orders from the individual stores. Each day, stores submit their orders to the distribution center by 5:00 p.m., and the distribution center picks, packs, and ships them by 11:00 p.m. Although the orders vary each day, the overall volume of each order (in the number of mixed pallets) remains relatively constant. The table below provides the typical daily demand requirements at each store.

Motivation

We investigated possible cost reduction measures in order to maximize the weekly profit.

Cost Reduction Strategy

Capture

Conclusion

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