Express company’s vehicle routing optimization by multiple-dynamic saving algorithm
Abstract: According to the
disorder in circulation commuting and crossover commuting of SF company which
is the China’s largest private express delivery service provider, the study
uses the Saving Algorithm to make the vehicle routing and resources optimized,
on this basis, proposes innovative improvements with Saving Algorithm and then
applies it in every distribution center of SF forming a
"multi-dynamic" type of Saving Algorithm to ensure both cost savings
and timeliness. This method can be generalized for all express company to get
the vehicle routing optimized.
Design/methodology/approach: As the special transportation requirements
of express companies, this study optimizes the vehicle route based on Saving
Algorithm, uses multiple-dynamic Saving Algorithm, and considers the timeliness
requirements of the express company to achieve a balance of cost and
timeliness.
Findings: The main finding is that a new method proposed which there can
be a balance improvement for both cost and timeliness to optimize the vehicle
route of express company. Calculation example validates the effectiveness of
the model established and solving method.
Practical implications: It is a widespread practice that by setting up
model and parameters for the objectives, express company can maintain the
balances between cost and timeliness and achieve the optimized vehicle route.
Originality/value: It proposes innovative improvements, takes SF express
company as an example, with Saving Algorithm which can be applied in every
distribution center of express company to ensure the balance improvement for
both cost and timeliness, and has a great practical significance to the
transportation network and path optimization of express companies.
Keywords: express company,
saving algorithm, optimization of the vehicle route, multiple-dynamic,
limitation, SF company
Author: Junchao Liu, Wei Liu,
Yuhong Liu
Journal Code: jptindustrigg140047
