Optimization of the Pick-Up and Delivery Technology in a Selected Company: A Case Study

Abstract

This article deals with pick-up and delivery activities in a selected company that focuses on the distribution of products in the gastronomic sector of the market and suggests how to make the present approach more efficient. The introductory part of the article clarifies the meanings of basic concepts related to the issue of optimizing the logistics processes in the company. The crucial goal is to analyze the existing pick-up and delivery technology and then, in the application part of the article, to propose adequate measures in the context of streamlining these activities with their technical and economic evaluation. An analysis of current delivery routes, which are used for the distribution of gastronomic products, is first performed. Thereafter, the routes are optimized with the aim of minimizing the total distance traveled by using the Operations Research methods, namely: the Hungarian method, Vogel approximation method, nearest neighbor method and the Routin route planner which is based on a principle of the Greedy algorithm. At the end of the article, a technical and economical evaluation of the findings is discussed, wherein the individual results of optimization through selected methods are first compared and then, new optimized routes are selected.

Keywords

• logistics center
• Operations Research
• distribution problem
• vehicle routing problem
• Hungarian method
• Vogel approximation method