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Consistent vehicle routing problem with service level agreements: A case study in the pharmaceutical distribution sector

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  • Campelo, Pedro
  • Neves-Moreira, Fábio
  • Amorim, Pedro
  • Almada-Lobo, Bernardo

Abstract

In this paper, a mathematical model is developed to tackle a Consistent Vehicle Routing Problem, which considers customers with multiple daily deliveries and different service level agreements such as time windows, and release dates. In order to solve this problem, an instance size reduction algorithm and a mathematical programming based decomposition approach are developed. This solution approach is benchmarked against a commercial solver. Results indicate that the method solves instances of large size, enabling its application to real-life scenarios. A case study in a pharmaceutical distribution company is analyzed. Consistent routes are planned for several warehouses, comprising hundreds of orders. A simulation model evaluates the performance of the generated route plans. Significant improvements in terms of the total distance traveled and the total travel times are obtained when compared to the company’s current planning process.

Suggested Citation

  • Campelo, Pedro & Neves-Moreira, Fábio & Amorim, Pedro & Almada-Lobo, Bernardo, 2019. "Consistent vehicle routing problem with service level agreements: A case study in the pharmaceutical distribution sector," European Journal of Operational Research, Elsevier, vol. 273(1), pages 131-145.
    • Handle: RePEc:eee:ejores:v:273:y:2019:i:1:p:131-145
    DOI: 10.1016/j.ejor.2018.07.030
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    5. Nolz, Pamela C. & Absi, Nabil & Feillet, Dominique & Seragiotto, Clóvis, 2022. "The consistent electric-Vehicle routing problem with backhauls and charging management," European Journal of Operational Research, Elsevier, vol. 302(2), pages 700-716.
    6. Yang, Meng & Ni, Yaodong & Song, Qinyu, 2022. "Optimizing driver consistency in the vehicle routing problem under uncertain environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    7. Alarcon Ortega, Emilio J. & Schilde, Michael & Doerner, Karl F., 2020. "Matheuristic search techniques for the consistent inventory routing problem with time windows and split deliveries," Operations Research Perspectives, Elsevier, vol. 7(C).
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    9. Jost, Christian & Jungwirth, Alexander & Kolisch, Rainer & Schiffels, Sebastian, 2022. "Consistent vehicle routing with pickup decisions - Insights from sport academy training transfers," European Journal of Operational Research, Elsevier, vol. 298(1), pages 337-350.
    10. Rodríguez-Martín, Inmaculada & Yaman, Hande, 2022. "Periodic Vehicle Routing Problem with Driver Consistency and service time optimization," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 468-484.
    11. Zhao Li & Tie Xia & Wanzhi Shen & Sheng Chen, 2022. "Research on Co-Opetition Mechanism between Pharmaceutical Enterprises and Third-Party Logistics in Drug Distribution of Medical Community," IJERPH, MDPI, vol. 20(1), pages 1-19, December.
    12. Quirion-Blais, Olivier & Chen, Lu, 2021. "A case-based reasoning approach to solve the vehicle routing problem with time windows and drivers’ experience," Omega, Elsevier, vol. 102(C).
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    14. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.

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