An efficient solution framework for a large scale delivery problem

Abstract

In this paper, we propose a three-stage solution framework to address a large scale delivery problem consisting of about 1400 delivery points with an aim to improving delivery efficiency and reducing total delivery cost. The problem was first decomposed into a number of smaller sub-problems through a clustering method based on Binary Integer Programing (BIP) model. Then delivery routes were formed within each cluster to reduce delivery cost while satisfying various constraints. Lastly, due to the feature of the delivery problem, delivery routes were assigned to vehicles based on a Bin Packing Problem which again was formulated as a BIP model. Computational results show that the prosed framework can provide an efficient and cost effective delivery plan for the large scale delivery problem.