The Vehicle Routing Problem or VRP is a challenge that many transportation companies have had to face. As its name indicates, it has to do with finding the best route to reach the destination. The objectives of optimization seek to find a shorter distance, a shorter time or a lower final cost.
Variables that distinguish VPR
The VPR is considered a more general version of the basic Traveling Agent Problem or TSP. Although the difference is that VPR takes several vehicles into consideration in the routing model . Resulting in different variables whose resolution depends on a series of characteristics. Let's talk about some of the main Vehicle Routing Problems:
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Stochastic VRP or SVRP, this is the version or definition that relates to events that arise randomly. Such as customer demand, whether high or low, and the travel times traveled by each vehicle.
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VRP with multiple distribution centers or MDVRP, this is used in companies that usually have merchandise. It also works when taxis are associated with the delivery service, since this is used when picking up orders in different places.
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VRP with pickups and deliveries or VRPPD, when the order must be moved from one location to another. The need to find optimized routes to better reach your respective destination arises.
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VRP with time windows or VRPTW, refers to the places where orders must be delivered, with a predetermined time.
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Periodic Vehicle Routing Problem or PVRP, takes into account a stipulated period of time during which customers must be served. This model was proposed by Francis solved using Lagrangian relaxation.
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Mixed Fleet Vehicle Routing Problem or MFVRP, is a type of VRP different from the classic version. It varies in the use of a heterogeneous fleet of vehicles that have different capacities and at the same time equally variable costs. The routing cost is the sum of the fixed costs plus the variable costs, the latter being given in proportion to the distance traveled.
The Vehicle Routing problem is one of the challenges that must be addressed before the vehicle leaves to make delivery. This is why the development of algorithms that provide solutions is key in these cases to improve the delivery process.
Are there two types of routing?
It is important that you are clear as a transport company that there are two types of routing, dynamic and static. The latter is used in the same way to address the problem of vehicle routing. But, although it allows you to add orders that will be part of the route planning, the process is done manually. So it has a larger margin of error, so it's not entirely efficient.
In dynamic routing it is the opposite, it goes through an optimization process that gives greater movement to the delivery plans. Therefore, one way to differentiate the routings is that one is based on human judgment to organize, and the other involves a refinement process according to the algorithm simulations.
Another aspect that makes dynamic routing better is that it gives rise to quality information to execute better route planning. And at the same time it allows us to more easily address problems of different kinds. Because it takes into account the probability that order demands will rise or fall, something vital to address e-commerce deliveries and the variables of their demands.
The importance of dynamic routing
Dynamic routing is precisely the solution for transport companies that allows them to plan next-day deliveries. Mobilizing everything without having to wait until the end of the day, since what it does is successively energize previously created plans.
Additionally, using this algorithm, you can add orders to your already scheduled planning, regardless of whether they are already in execution. Planning is now optimized again with a result that evolves as guides are added. Therefore, dynamic routing is important because it improves efficiency in distribution centers, a phase that is very relevant.
Benefits of dynamic routes
There are many apps that come with the functionality of integrated dynamic routes, these will facilitate the design of optimized routes while new orders arrive. Additionally, the functionality provides greater logistics efficiency by enhancing route intelligence. Some of the benefits of Vehicle Routing using dynamic routes are:
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Optimize resources by organizing the picking schedules of warehouses, warehouses or distribution centers, reducing overtime work hours on night shifts.
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Avoid changes that end up being unnecessary, thanks to the inclusion of order-vehicle assignments made on the day.
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Reduce costs by increasing the turnover rate of orders from the various associated companies.
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Inform your customer if it will take extra time for delivery well in advance, in order to offer a better experience.
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Solve problems and make immediate decisions with real-time information, making it ideal for high-demand hours.
The solution to all your problems
The Vehicle Routing Problem is not impossible to solve as you may have seen. Dynamic routing is already being applied by the most lucrative businesses in recent years. It's the tool you need to be prepared for the challenges of the last mile. So don't wait any longer, take your transportation company to the next level.
