Optimization of multi-objective outbound logistics operation

Abstract

Distribution, one of major outbound logistics functions draws attention due to high cost incurred. This study investigates the planning of a real time distribution operation achieving three objectives simultaneously. Route optimization, truck utilization and equal delivery make-span have been accompanied in order to address the problem giving financial benefits to company and satisfying the stake-holders. It is a real challenge to fulfill these three objectives concurrently; however, this research provides promising solution for the problem combining both exact and heuristics techniques. Heuristics techniques exploits to cluster the customers ensuring equal delivery make-span and Dijikstra algorithm has been modified to generate optimal route in terms of distance and delivery quantity. Algorithm was developed in C++. Results reveal that proposed route planning reduces the cost by 11.5 % included with 50% reduction of fleet size and 37% saving of travel distance.