Optimizing the multiple trip vehicle routing plan for a licensee green tea dealer in Sri Lanka

Abstract

PurposeThis research is designed to optimize the business process of a green tea dealer, who is a key supply chain partner of the Sri Lankan tea industry. The most appropriate trips for each vehicle in multiple trip routing systems are identified to minimize the total cost by considering the traveling distance.Design/methodology/approachThe study has followed the concepts in vehicle routing problems and mixed-integer programming mathematical techniques. The model was coded with the Python programming language and was solved with the CPLEX Optimization solver version 12.10. In total, 20 data instances were used from the subjected green tea dealer for the validation of the model.FindingsThe result of the numerical experiment showed the ability to access supply over the full capacity of the available fleet. The model achieved optimal traveling distance for all the instances, with the capability of saving 17% of daily transpiration cost as an average.Research limitations/implicationsThis study contributes to the three index mixed-integer programing model formulation through in-depth analysis and combination of several extensions of vehicle routing problem.Practical implicationsThis study contributes to the three index mixed-integer programming model formulation through in-depth analysis and combination of several extensions of the vehicle routing problem.Social implicationsThe proposed model provides a cost-effective optimal routing plan to the green tea dealer, which satisfies all the practical situations by following the multiple trip vehicle routing problems. Licensee green tea dealer is able to have an optimal fleet size, which is always less than the original fleet size. Elimination of a vehicle from the fleet has the capability of reducing the workforce. Hence, this provides managerial implication for the optimal fleet sizing and route designing.Originality/valueDeveloping an optimization model for a tea dealer in Sri Lankan context is important, as this a complex real world case which has a significant importance in export economy of the country and which has not been analyzed or optimized through any previous research effort.