Analysis and Improvement of Distribution Routes and the Associated Vehicle Fleet – Application to a Real Case in Portugal

Logistics management plays a key role in improving business efficiency, since it is the part of supply chain management that plans, implements and controls the flow of goods, services and information between the point of origin and the point of consumption. Customers are more demanding and want the right products, in the right place, at the right time and in the right quantity. Consequently, logistics plays a fundamental role because it allows adding value to the product, and is always seeking to minimize the total costs. In the field of supply chain management, the use of vehicles to deliver products to customers is one of the largest operations. However, before delivering the products it is necessary to optimize the routes of the vehicles, in order to provide an efficient and low cost service. This study intends to analyze and propose improvements in the distribution network of ABC, a Portuguese company dedicated to the commercialization and distribution of home decoration products. The main objective of this work is to provide a model that allows the company to optimize the distribution routes and the associated fleet, in order to minimize the total costs of the distribution, maintaining the level of service provided to the customer. Finally, a model was developed that allows the definition of optimal routes for the various delivery points, resulting in a reduction in the number of vehicles to be used, the total distance traveled and the time of the journeys, leading to a real reduction in logistics costs.



Author Information
Jose Miguel Soares, ISEG Lisbon School of Economics & Management, Universidade de Lisboa, Portugal
Fernanda Mendes, European University/Laureate International Universities, Portugal

Paper Information Conference: ECSS2017
Stream: Business Administration and Business Economics; Marketing; Accounting

Added on Tuesday, June 20th, 2017

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Posted by amp21