Improvement of distribution logistics processes using Vehicle routing problem with pickup and delivery with time windows algorithm

Abstract

Distribution logistics is one of the key areas of logistics. Correct setup of the distribution logistics processes is directly linked to customer service provided and affects the company's economic performance. This article is focused on distribution logistics processes of companies providing express courier services. The market of companies providing express courier services is very competitive. There are many companies offering very similar services. This is one of the reasons why companies need to streamline their processes and as well distribution logistics processes. Express courier companies operate on a very turbulent market where customer requirements change every day. Customers are demanding transportation of various products from different source destinations to various target destinations respecting time windows loading and unloading. The use of the Vehicle routing problem with pickup and delivery with time windows algorithm is one of the ways to improve processes of distribution logistics for express courier companies. The aim of this article was to test the use of the algorithm in terms of real practice. The algorithm was simulated on the real data of the company provides express courier services.