Optimal Transportation Planning for a Do-It-Yourself Retailer with a Zone-Based Tariff

Abstract

This article describes the development of a decision support tool for a Rich Vehicle Routing Problem (R-VRP) of a major European do-it-yourself (DIY) retailer. The tool enables more comprehensive and structured planning at the retailer and an average of 8% transportation cost savings, translating to total savings of more than € 1 million per year for this specific retailer compared with the status quo.