Intelligent Vehicle Scheduling and Routing for a Chain of Retail Stores: A Case Study of Dhaka, Bangladesh

Abstract

Background: Retail chains aim to maintain a competitive advantage by ensuring product availability and fulfilling customer demand on-time. However, inefficient scheduling and vehicle routing from the distribution center may cause delivery delays and, thus, stock-outs on the store shelves. Therefore, optimization of vehicle routing can play a vital role in fulfilling customer demand. Methods: In this research, a case study is formulated for a chain of retail stores in Dhaka City, Bangladesh. Orders from various stores are combined, grouped, and scheduled for Region-1 and Region-2 of Dhaka City. The ‘vehicle routing add-on’ feature of Google Sheets is used for scheduling and navigation. An android application, Intelligent Route Optimizer, is developed using the shortest path first algorithm based on the Dijkstra algorithm. The vehicle navigation scheme is programmed to change the direction according to the shortest possible path in the google map generated by the intelligent routing optimizer. Results: With the application, the improvement of optimization results is evident from the reductions of traveled distance (8.1% and 12.2%) and time (20.2% and 15.0%) in Region-1 and Region-2, respectively. Conclusions: A smartphone-based application is developed to improve the distribution plan. It can be utilized for an intelligent vehicle routing system to respond to real-time traffic; hence, the overall replenishment process will be improved.