The Strategic Approach for Successful Realistic Improvements in Practical Vehicle Routing Algorithms

Abstract

Vehicle Routing Problem (VRP) is the process of set selection of the most convenient route in a network of roads vehicles are supposed to drive along when serving customers. Although vehicle problems solutions are being researched and improved in science, this problem is also important in industry, and the reason is the potential reduction of the shipping cost. Transport management is the central problem in logistics of one company, and the choice of optimal routes is one of the crucial functions in that process. However, as much as routes are algorithmically optimal, and as much as they include predefined limitations, there are some factors in the realistic environment which perhaps are not adequately treated during the creating the given routes. The innovative approach of adjustment of most of the parameters and factors necessary for the VRP algorithms being used in reality is presented in this work. It is based on the principle of successful feasibility of the given routs in realistic environment. The feasibility of the routes on the realistic example of one of the greatest distribution companies in Bosnia and Herzegovina has been significantly increased by introducing the realistic settings and improvements by comparative results before and after the introduction of the suggested modifications.