An Optimization Prototype for Distribution Planning

One of the most important problems in the transportation networks is the physical distribution optimization. A huge effort has been invested in cutting the transport costs via computer optimization of vehicle routing. Abstractly, the task is known as the vehicle routing problem (VRP) and there exist many different algorithms for approximate solutions, with various tradeoffs. The main goal of the problem is to carry out deliveries from the central storage facility to all customers incurring minimal costs. Generally, putting VRP into practice presents a number of additional difficulties, from obtaining road network information, gathering data about shipments and packaging to efficient coding of algorithms. The purpose of this paper is to present development and implementation of a transport routing application for a special distribution centre and customer network, the environmental aspect being importantly represented in the model. Namely, the presented distribution optimization model can be a useful tool for trading as well as for manufacturing companies that face problems and questions related to distribution of goods and at the same time aim to be competitive from the eco-friendly aspect, as well. The paper presents new findings on further optimization options of goods distribution and new challenges for further research.