An exact algorithm for multi depot and multi period vehicle scheduling problem

Abstract

This study is on the multi period vehicle scheduling problem in a supply chain where a fleet of vehicle delivers single type product from multi depots to multi retailers. The purpose of this model is to design the least costly schedule of vehicles in each depot to minimize transportation costs for product delivery and inventory holding costs at retailers over the planning period. A mixed integer programming formulation and an exact algorithm are suggested. In the exact algorithm, all feasible schedules are generated from each depot to each retailer and set of vehicle schedules are selected optimally by solving the shortest path problem. The effectiveness of the proposed procedure is evaluated by computational experiment. © Springer-Verlag Berlin Heidelberg 2005.